Caterpillar enters a synchronized growth cycle
The bull case for Caterpillar is that all three of its primary business divisions are now growing simultaneously, supported by a massive $60 billion backlog.
The argument
The guest argued that while Caterpillar previously relied almost entirely on its power and energy division for growth, its construction and resource divisions are now reaccelerating, with resource industry order backlog growth reaching levels not seen since 2012.
The thesis, stress-tested
✓ What validates it
- ✓Continued backlog expansion above $60 billion in upcoming quarterly reports
- ✓Sustained order growth in the resource industries division
▸ Risks discussed
- ▸Mining sector capital expenditure slowdown
- ▸High interest rates dampening construction equipment demand
Hear it yourself
"And that's what got The US into this condition where its industrial footprint is in tatters. That's over. And no administration, regardless of what side of the island we're on, we are not going back to a world where we're gonna deep where we're gonna go back to globalization. The train has left the station. So my question from that would be, why has the train left the station? There's so many factors. You hear people talk about the energy advantage of of production here in The US. You hear people talk about there's a push and a pull."
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