7 Cheap Global Stocks to Buy Right Now

5. Caterpillar Inc. (NYSE:CAT)

Forward P/E ratio as of February 24^th: 14.81x

Number of Hedge Fund Holders: 62

Caterpillar Inc. (NYSE:CAT) is a global leader in construction and mining equipment, engines, and industrial power systems. Its heavy machinery is widely used across infrastructure, energy, and resource industries, benefiting from sustained global investment in large-scale projects. Beyond equipment sales, CAT generates strong recurring revenue through parts, services, and digital solutions that enhance fleet efficiency. As the industry shifts toward automation and sustainability, the company is investing in electrified machinery, autonomous technology, and alternative fuels to strengthen its position and adapt to the evolving demands of the heavy equipment market.

Caterpillar Inc. (NYSE:CAT) has demonstrated remarkable growth since 2017, with earnings power tripling and sales increasing by 50%. The company’s success has been driven by its strategy for profitable growth, focusing on operational excellence, expanded services, and sustainability. A key component of their success has been the Operating and Execution model, which enables a more granular understanding of financial performance across products. The company has significantly improved its services business, targeting $28 billion in revenue by 2026, with current progress at $23 billion as of 2023.

Caterpillar Inc. (NYSE:CAT) has demonstrated strong cash generation capabilities, consistently producing $5-10 billion in free cash flow since 2017, except during the 2020 pandemic. The company is experiencing significant growth in the Energy & Transportation segment, particularly driven by data center demand and distributed power generation opportunities. In the mining sector, CAT has made progress in autonomous solutions, making it economically viable for smaller fleets of 10-12 trucks compared to the previous requirement of 70+ trucks. The company maintains a strong balance sheet and has demonstrated resilience during market downturns while continuing to invest in growth opportunities across its business segments. Looking forward, management sees significant organic growth opportunities, particularly in services, distributed generation, data centers, and mining sector growth driven by electrification trends.