Was Billionaire Jeffrey Talpins Right About These 5 Stocks?

3. Caterpillar Inc. (NYSE:CAT)

No. of Hedge Fund Holders: 45

Performance of CAT Over the Past Six Months: +16%

Caterpillar Inc. (NYSE:CAT) is a leading manufacturer of heavy equipment, power solutions, and locomotives. The company is divided into 4 segments: Construction Industries, Resource Industries, Energy and transportation, and Caterpillar Financial Services.

On August 3, Wells Fargo & Company covered Caterpillar Inc. (NYSE:CAT) and reduced its price objective from $230.00 to $205.00. It gave an “Equal-weight” rating to the company.

Diamond Hill Capital, an investment management firm, published its first quarter of 2022 investor letter and mentioned Caterpillar Inc. (NYSE:CAT). Here is what the fund said:

“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.”