5 Best Manufacturing Stocks To Invest In

3. Caterpillar Inc. (NYSE:CAT)

Number of Hedge Fund Holders: 45

Caterpillar Inc. (NYSE:CAT) manufactures and markets construction and mining equipment worldwide. On October 4, Caterpillar Inc. (NYSE:CAT) announced that it will unveil four electric machine prototypes, including battery prototypes, at the bauma trade fair 2022 in Munich, Germany.

On August 31, Baird analyst Mircea Dobre maintained a buy-side Outperform rating and his $224 price target on Caterpillar Inc. (NYSE:CAT). On October 6, JPMorgan analyst Tami Zakaria raised her price target on Caterpillar Inc. (NYSE:CAT) to $220 from $205 and reiterated a buy-side Overweight rating on the shares.

At the close of the second quarter of 2022, 45 hedge funds held stakes in Caterpillar Inc. (NYSE:CAT). The total value of these stakes amounted to $3.25 billion. As of June 30, Fisher Asset Management is the most prominent investor in Caterpillar Inc. (NYSE:CAT) and has stakes worth $1.34 billion in the company.

Here is what Diamond Hill Capital had to say about Caterpillar Inc. (NYSE:CAT) in its first-quarter 2022 investor letter:

“We also initiated a position in Caterpillar (NYSE:CAT), one of the world’s leading manufacturers of construction and mining equipment. It’s a company we know well, as we have owned it in our large cap portfolio for quite some time. Recent share price weakness provided an opportunity for us to add it to our large cap concentrated portfolio at an attractive discount to our estimate of intrinsic value. We believe Caterpillar stands to benefit from increased capital investment supported by a healthier/recovering end market environment, particularly in construction and mining.”