Is Caterpillar Stock a Buy?

Investors buy stocks for all types of reasons, so whether (NYSE: CAT) is a buy will depend on an investor's aims. The world's largest maker of construction equipment isn't a "buy" for most investors, but it will suit patient, less-aggressive investors looking for long-term income. Here's why.

While it's impossible to know the exact motivations of the investing public, I believe most investors prefer to buy undervalued stocks. This holds whether they are growth or value-oriented investors; neither style of investing makes sense if you can't get the stock on a reasonable valuation. 

In the case of Caterpillar, unless you believe in a long-term uptrend in infrastructure/construction spending and the commodity supercycle argument, then the stock looks fairly valued. 

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Source Fool.com