Key Stats for Caterpillar Stock
- Price Change for $CAT stock: -4%
- Current Share Price: $419
- 52-Week High: $441
- $CAT Stock Price Target: $450
What Happened?
Caterpillar (CAT) stock fell more than 3% on Friday after the heavy-equipment maker warned that tariff-related expenses would be higher than previously expected.
It now expects tariff costs of $1.5 billion to $1.8 billion for 2025, up from its prior forecast of up to $1.5 billion.
This increase comes as companies across various industries scramble to assess the impact of shifting U.S. trade policy under the Trump administration.
The revised tariff estimate prompted Caterpillar to lower its profit margin outlook, with full-year adjusted operating profit margin now expected to be “near the bottom of the target margin range” rather than in the top half as previously guided.
For the third quarter alone, Caterpillar expects tariff impacts of $400 million to $500 million, which is higher than the impact in the second quarter.
See analysts’ growth forecasts and price targets for Caterpillar stock (It’s free!) >>>
What the Market Is Telling Us About Caterpillar Stock
The sell-off in CAT stock reflects widespread concern about industrial companies’ ability to pass through tariff costs to customers.
Morgan Stanley analyst Angel Castillo noted that “CAT and the construction equipment group have thus far exhibited little to no ability to pass through tariffs,” highlighting a key challenge facing the sector.
Two analysts lowered their price targets following the disclosure, with Oppenheimer cutting its target to $480 from $493 and Baird reducing its target to $495 from $500.
Despite the tariff headwinds, some analysts remain optimistic about underlying demand fundamentals.
The company’s record backlog of $37.5 billion and strong order rates across all segments suggest robust underlying business momentum, even as tariff pressures weigh on near-term profitability.
Wall Street Analysts Are Bullish on These 5 Undervalued Compounders With Market-Beating Potential
TIKR just released a new free report on 5 compounders that appear undervalued, have beaten the market in the past, and could continue to outperform on a 1-5 year timeline based on analysts’ estimates.
Inside, you’ll get a breakdown of 5 high-quality businesses with:
- Strong revenue growth and durable competitive advantages
- Attractive valuations based on forward earnings and expected earnings growth
- Long-term upside potential backed by analyst forecasts and TIKR’s valuation models
These are the kinds of stocks that can deliver massive long-term returns, especially if you catch them while they’re still trading at a discount.
Whether you’re a long-term investor or just looking for great businesses trading below fair value, this report will help you zero in on high-upside opportunities.
Click here to sign up for TIKR and get our full report on 5 undervalued compounders completely free.
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
