Caterpillar is one of the world’s leading industrial companies and is poised for some growth in the years to come, industry analysts say.
The company’s stock has reached record levels in recent weeks, most recently at $ 203.29 on February 16.
Rising commodity prices, expected growth in construction activity and possibly new infrastructure legislation in Washington are all positive signs for Caterpillar in the near future.
It is good news for a company that has gone through difficult times in recent years. The company bet heavily on expanding its mining equipment business about a decade ago, when commodity prices were too high, only to see prices fall again. Caterpillar sales fell along with them.
Since then, the company known for its large yellow iron equipment has been restructuring and is developing some new products and solutions that can contribute to its growth, including autonomous vehicles, remotely operated equipment and telematic software.
Meanwhile, analysts say rising commodity prices are a sign that at least some parts of the world are ready to go back to work.