Is Caterpillar Stock a Buy?
Shares of construction giant Caterpillar (NYSE: CAT) continue to surge higher. After a strong 2020 performance, the stock has started 2021 as one of the best performers in the Dow Jones Industrial Average.
But Caterpillar isn't trading higher because its results are good. In fact, its 2020 performance was pretty terrible and included one of the company's worst quarters in history. Instead, Caterpillar's fresh all-time high is based on future performance and the expectation that the company will be a big beneficiary from a 2021 bull market, infrastructure stimulus, higher oil prices, and other post-pandemic tailwinds. Let's break down Caterpillar's 2020 performance and outlook for the years ahead to see if the company can justify its surging share price.
Image source: Caterpillar.
Source Fool.com
