economy
This industrial giant continues to reach new heights. The charts suggest more gains lie ahead
Jay Woods of Freedom Capital Markets takes a look at the short- and long-term technicals of this industrial name.
TL;DR
- Caterpillar's stock has seen significant gains, up 61% year-to-date and over 165% in the past 12 months.
- Fundamentally, demand is strong, supported by a large order backlog, margin expansion, and positioning in AI, reshoring, mining, and infrastructure spending.
- Technically, a breakout from a triangular formation suggests continuation of the primary trend, with calculated upside targets of $1,020 and potentially $1,080.
- VWAP levels and upcoming MACD crossover signal positive short-term technicals.
- Long-term Fibonacci extensions indicate potential further upside objectives.
- The company is seen as a key supplier in the AI infrastructure buildout, providing the 'picks and shovels' for the next industrial boom.