Caterpillar is upgraded to Buy, with shares now undervalued relative to robust forward EPS growth and a favorable risk/reward profile. Q2 results were record-breaking: $8.17 EPS (vs. $7.20 consensus), $20.5B revenue (+23.5% YoY), and a $72.1B order backlog. CAT's 2026 EPS forecast rose from $24.72 to $27.19, supporting a $930 intrinsic value using a 30x P/E and a reasonable PEG ratio.








