Caterpillar is one of the world’s leading industrial companies and is poised for some growth in the coming years, industry analysts say.
The company’s stock has hit record highs in recent weeks, most recently reaching an all-time high of $ 203.29 on Feb. 16.
Rising commodity prices, expected construction activity growth and possibly new infrastructure legislation in Washington are all positive signs for Caterpillar in the near future.
It’s good news for a company that has been going through tough times in recent years. The company invested heavily in expanding its mining equipment business about a decade ago, when raw material prices were skyrocketing, only to see prices fall again. Caterpillar sales fell along.
Since then, the company known for its large yellow iron equipment has restructured and developed a number of new products and solutions that can contribute to its growth, including self-driving vehicles, remote-controlled equipment and telematics software.
Meanwhile, analysts say rising commodity prices are a sign that at least some parts of the world are ready to get back to work.