Caterpillar (NYSE:CAT) shares snapped six straight sessions of gains, as the stock closed 0.50% lower at $495.38 on Monday.
The dealers of construction equipment and heavy machinery gained about nearly 7% in the preceding six sessions.
CAT is up over 18% in the past one month. The stock closed 1.48% higher on Friday at $497.85.
Looking at Seeking Alpha’s Quant Rating, CAT has a Hold rating with a score of 2.98 out of 5. The company received A+ in the prospect of profitability and a D- in growth and valuation
Turning to the Wall Street community, 14 analysts gave CAT a Buy and above. 10 analysts have given the stock a Hold recommendation, and one recommended Strong Sell.
Seeking Alpha analysts are also cautious and see the stock as a Hold.
However, Seeking Alpha analyst Cedric Pfort stated that despite a valuation premium, Caterpillar’s resilient services business, dealer network, and secular growth drivers justify a Buy rating for long-term investors.
“Caterpillar is evolving from a cyclical industrial company to a quality compounder, driven by infrastructure investments, the energy transition, and data center growth,” added Pfort.
Overall, the stock has gained 39% so far this year, compared to the over 14.5% rise in the broader S&P 500 Index.