10 Best Industrial Machinery Stocks to Buy Now

6. Caterpillar Inc. (NYSE:CAT)

Number of Hedge Fund Holders: 49

Caterpillar Inc. (NYSE:CAT) is a leading producer of locomotives, power solutions, and heavy machinery. It is currently the biggest heavy equipment producer in the world. The company is divided into four reportable segments: resource industries, energy and transportation, construction industries, and Cat Financial. Its products are sold through a global dealer network that consists of 160 dealers and over 2,700 outlets. In addition to providing wholesale finance for dealers, Cat Financial offers retail financing for engines and machines to its clients, boosting the possibility that Caterpillar products will be sold.

Caterpillar Inc. (NYSE:CAT)’s broad range of mining, construction, energy, and transportation products keeps it at the top of the global heavy machinery industry. As a reputable manufacturer of mission-critical heavy machinery for almost a century, the firm has become one of the most valuable brands in the world. The strong brand is supported by incredibly dependable, effective, and high-quality items. Additionally, Caterpillar’s capacity to reduce the total cost of ownership is valued by customers.

Caterpillar Inc. (NYSE:CAT) maintained a strong operating profit margin and cash flow in Q3 2024, despite a 4% YoY decline in revenue that was primarily driven by lower sales volume in the construction and resource segments. The firm showed good financial management by ending Q3 2024 with $5.6 billion in enterprise cash. The management views the varied end markets as a stabilizing element despite fluctuating segment performance.

Ric Dillon’s Diamond Hill Capital owned the largest stake in Caterpillar Inc. (NYSE:CAT) at the end of Q2 2024, as per Insider Monkey’s database. It owns 1,349,608 shares worth $527.86 million as of Q2.