Is Caterpillar Inc. (CAT) the Dow’s Best Value Play?

Then, returning to China overall, maybe the next couple of quarters some headwinds with mining, but I think long-term, it’s a growth story. Right now, Caterpillar gets 3% of their revenues from China. I think there’s clearly a lot of improvement there. They’re going to be catching up to Komatsu, or at least trying to.

You’ve got to watch the Chinese original equipment manufacturers there as they gain steam a little bit, but I think Caterpillar’s a solid brand name and — if they can come in and replicate the kind of quality, dealer, and service networks — with the brand power, people pay more for Caterpillar products because they understand that they’re quality products.

Overall, I think mining, as we talked about … we looked at General Electric Company (NYSE:GE) making a big bet on mining with Industrea in Australia, also purchasing another U.S.-based company, Joy Global Inc. (NYSE:JOY) actually pretty solid earnings in its fiscal first quarter, that just came out.

Overall, I’m bullish on this stock. You might be able to get a slightly better price with some of the near-term headwinds, but I think it’s a long-term really solid play to take advantage of the global developing economy. If you’re bullish on the overall economy, I think it’s a solid bet.

The article Is This Stock the Dow’s Best Value Play? originally appeared on Fool.com.

Brendan Byrnes owns shares of Caterpillar. The Motley Fool owns shares of General Electric Company.

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