BUZZ-Preview: Market focuses on Caterpillar earnings and closely monitors developments in the artificial intelligence sector

October 28 - ** Caterpillar (CAT.N) shares rose 0.4% on Wednesday to $716.37. The company will announce its third quarter financial results before the market opens on Thursday, with investors currently focusing on demand related to artificial intelligence.

** According to London Stock Exchange Group (LSEG) forecasts, the construction and power equipment manufacturer’s revenue this quarter is expected to rise 16.5% year-over-year to $20.54 billion, with adjusted earnings per share projected at $7.08, up from $4.95 a year ago.

** In the previous quarter, the company (link) reported a significant profit increase thanks to the expansion of artificial intelligence data centers, with investors watching to see if this trend continues.

** Last month, Caterpillar (CAT) announced (link) it would invest $1 billion to expand its manufacturing capacity in North Carolina, citing growing demand for compact equipment used in data center construction.

** Caterpillar shares are up 25% so far this year, outperforming the S&P 500 Index’s .SPX 13% gain and the S&P 500 Industrials Sector .SPLRCI rise of nearly 9%.

** The stock’s recent price-to-earnings ratio is 22 times, above its five-year average of 18, indicating a relatively high valuation; the share price is about 33% below the all-time intraday high of $1,073.46 reached on June 30, 2026.

** Among the 30 analysts covering Caterpillar, the stock’s ratings are: 17 recommend “strong buy” or “buy”, 12 recommend “hold”, and 1 recommends “sell”; the median price target is $908, down from $967.50 a month ago.

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