5 Construction Stocks to Buy Now

4. Caterpillar Inc. (NYSE:CAT)

Number of Hedge Fund Holders: 46

Caterpillar Inc. (NYSE:CAT) deals in the manufacturing and provision of construction and mining equipment, natural gas and diesel engines, industrial gas turbines and diesel-electric locomotives around the world. On February 3, Tigress Financial analyst Ivan Feinseth raised the firm’s price target on Caterpillar Inc. (NYSE:CAT) to $278 from $270 and maintained a ‘Buy’ rating on the shares. Feinseth holds that the post-pandemic recovery has led to pent-up demand in construction and an increase in commodity prices, leading to a surge in mining and construction spending. He sees these growth trends for mining equipment continue to accelerate in 2022.

As of the fourth quarter of 2021, Caterpillar Inc. (NYSE:CAT) posted earnings per share of $2.69, surpassing estimates by $0.43. The company raked in $13.80 billion in revenue for Q4, beating analysts’ forecasts by $558.88 million. Caterpillar Inc. (NYSE:CAT) also pays a healthy dividend yield of 2.21%, as of February 13.

46 hedge funds held positions worth $4.77 billion in Caterpillar Inc. (NYSE:CAT) at the end of the third quarter, down from 62 hedge funds in the previous quarter. Ken Fisher’s Fisher Asset Management was the leading shareholder of Caterpillar Inc. (NYSE:CAT) at the close of the fourth quarter, with around 7 million shares worth $1.44 billion.