David Lin on $CAT (Nov 6, 2026)
Caterpillar is down about 50%, and in the 400s the AI power-turbine trade is fully priced out; it is not super cheap on a teens forward multiple, and some of that E may come down, but even so, in the 400s it is a buy — though a correction that takes the S&P down 10% could send it lower than he thinks it can go.
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listen, like Caterpillar, uh, is down like 50%. It's probably one of the best companies in the world. Um, I think in the 400s, you've completely priced out, you know, the whole AI trade.
You know, 50 50% of this market cap was because they were going to, you know, build power turbines to help uh, new builds uh, and data centers. And I think that's completely now out of the stock, but it can sell below its fundamental value.
You know, it's not super cheap. It's now trading at a teens forward multiple. Uh some of that E might come come lower, but even if the E comes lower, you in the 400s, it's a buy.
But guess what? If we enter a correction, the S&P is down 10% from here, it could go it could go lower than I think it can go.
And you've also seen companies like Caterpillar which were building uh turbines for a lot of these data data center selloff.