Is Caterpillar the Best Industrials Stock to Buy Right Now?

Caterpillar delivered one of its strongest quarters, with Q2 2026 revenue up 24% to $20.5 billion and a record $72 billion backlog driven by AI infrastructure demand. The company's EPS reached $7.77, and analysts project significant upside with an average price target of $975 versus the current $803 price. However, the trailing P/E ratio above 35 reflects elevated valuation, though justified by multiyear demand visibility and reduced cyclicality.