Analyst Michael Feniger maintained a buy rating and raised the price forecast from $735 to $825.
Increasing customers’ capital expenditure
The analyst notes that the announcement by a major turbine customer (The Williams Companies) of substantial capital expenditure increases for 2026 is expected to significantly strengthen Caterpillar’s business prospects.
These strategic spends are expected to widen Caterpillar’s backlog, especially in the turbine and engine sectors, which are key to the company’s growth trajectory, the analyst said.
The analyst expects the company to benefit from a robust pipeline of projects, with key sectors such as power generation and infrastructure expected to perform better.
Feniger expects a multi-year recovery in earnings per share, driven by cyclical and structural growth factors such as higher commodity prices and infrastructure spending.
Recent earnings release
On January 29, Caterpillar announced its fourth quarter 2025 financial results.
Sales and revenues were $19.133 billion, up 18% from $16.215 billion in the same period last year. Adjusted earnings per share were $5.16, beating an estimate of $4.66, while revenue topped the estimate of $17.851 billion.
Technical analysis
Caterpillar is currently showing a very strong bullish technical setup, with the stock trading significantly above all major moving averages. This indicates strong upward momentum and an established uptrend over multiple time frames.
Caterpillar stock is in overbought territory, with an RSI of 73.61, which often indicates a stock is due for a pullback or consolidation. This overbought signal first appeared on February 6, 2026, so traders should keep an eye out for possible profit-taking.
The MACD for Caterpillar stock is currently above its signal line, which is a bullish sign that confirms positive momentum. This indicates that short-term buying pressure remains dominant.
A key support level for Caterpillar shares has been identified at $619.50, which traders should keep an eye on for possible rebounds if the price pulls back. There is currently no defined resistance level as the stock is trading at new highs.
The March 2025 death cross initially marked a bearish shift for Caterpillar stock, but this was quickly reversed. The golden cross in July 2025, where the 50-day SMA crossed above the 200-day SMA, confirmed the start of the current powerful uptrend.
Caterpillar shares have delivered an impressive 113.44% return over twelve months, reflecting strong performance over the past year. The stock is currently trading at 104.4% of its 52-week range, having hit a new 52-week high today, February 11, 2026.
Shares of Caterpillar are trading 16% above their 20-day SMA and 24.3% above their 50-day SMA, underscoring strong short- and medium-term strength. The stock’s position 60.9% above its 200-day SMA further underlines a very strong long-term bullish trend.
While the current overbought RSI suggests caution, the overall technical picture for Caterpillar stock remains strongly bullish with clear upside momentum. Traders should continue to watch for possible consolidation or a retest of support levels as the stock enters its new high territory.
CAT Price Promotion: Shares of Caterpillar rose 4.13% to $773.01 at time of publication on Wednesday. The stock is trading at a new 52-week high, according to data from Benzinga Pro.
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