Is Caterpillar Stock Outperforming the Dow?

Irving, Texas-based Caterpillar Inc. (CAT) manufactures and sells construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives in the United States and internationally. The company has a market capitalization of $367.9 billion and is one of the world’s largest manufacturers of the said equipment.

Companies with a market cap of $200 billion or more are typically referred to as “mega-cap stocks.” CAT fits perfectly into that category, with its market cap exceeding this threshold and reflecting its substantial size and influence in the farm and heavy construction machinery industry.  

However, CAT stock is down 25.9% from its 52-week high of $1,073.46 touched on June 30. Moreover, CAT has declined 9.2% over the past three months and has underperformed the Dow Jones Industrial Average ($DOWI), which rose 5.7% during the same period.   

Zooming out a little further, the scenario changes. Over the past 52 weeks, CAT has surged 82.8%, outpacing DOWI’s 17.4% gain.       

CAT has been trading above its 200-day moving average since last year, indicating long-term bullish momentum, but below its 50-day moving average since July.

On Aug. 4, CAT stock rose 5.6% following the release of its better-than-expected Q2 2026 earnings. The company’s revenue for the quarter amounted to $20.5 billion, surpassing the Street’s estimates. Moreover, its adjusted EPS for the period came in at $8.17, also topping Wall Street’s forecasts. 

When stacked against its peer, Deere & Company (DE), CAT has also outperformed. Over the past year, DE stock has grown 31.3%.    

Moreover, sentiment on CAT remains moderately optimistic. Among the 23 analysts covering the stock, the consensus rating is a “Moderate Buy.” Its mean price target of $1,009.86 suggests 27.4% upside from current levels.