Caterpillar (NYSE:CAT) indicated that it expects a long healthy upcycle in the mining sector, which is a key end market for the company.
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The metals market is seeing strong demand and rising prices, as economies re-open following Covid. Moreover, countries such as the U.S. are planning significant infrastructure spending, which will also bode well for commodities demand.
Caterpillar is one of the larger suppliers of underground and surface mining equipment in the world. The company’s Resources segment accounted for about 17% of sales last year. However, we think that much of the potential gains are likely priced in, as CAT stock has rallied by about 35% year-to-date.
While we think Caterpillar stock looks slightly overvalued, it is helpful to know how its peers stack up. Caterpillar Stock Comparison With Peers summarizes how CAT compares against peers on metrics that matter. You can find more useful comparisons on Peer Comparisons.