The Zacks Analyst Blog Highlights Caterpillar, Komatsu, Terex and The Manitowoc

For Immediate ReleaseChicago, IL – August 14, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Caterpillar Inc. CAT, Komatsu KMTUY, Terex Corp. TEX and The Manitowoc Co. MTWHere are highlights from Tuesday’s Analyst Blog:CAT Down 5% Since Q2 Earnings Miss: Buy, Sell or Hold the Stock?Caterpillar Inc.recently reported second-quarter 2025 results, with the mining and construction equipment behemoth witnessing year-over-year declines in its top and bottom lines. While revenues beat the Zacks Consensus Estimate, earnings fell short. The quarter marked CAT's sixth consecutive quarter of revenue decline and the fourth straight quarter of earnings decline.Following this performance, CAT shares have dipped 5%. Despite this, CAT stock has notched a 13.7% year-to-date gain compared with the industry's 11.9% growth. In comparison, the Zacks Industrial Products sector has gained 5%. Meanwhile, the S&P 500 has risen 8.2%.Meanwhile, peer Komatsu has fared better with a year-to-date 23.9% rise. Terex Corp. and The Manitowoc Co. have lagged CAT stock, gaining 9.6% and 7.5%, respectively.Before addressing the critical question of how investors should position themselves regarding the stock, let us dig deeper into the second-quarter results and evaluate CAT stock's fundamentals.Caterpillar's Q2 Revenues, Profits & Cash Flow FallCaterpillar's revenues declined 1% year over year to $16.6 billion as unfavorable price realization offset higher volumes.Adjusted operating profit was around $2.92 billion, down 22% from the year-ago quarter. The adjusted operating margin was 17.6% compared with 22.4% in the second quarter of 2024.Earnings per share were $4.72, which came in 21% lower than the year-ago quarter owing to lower revenues and the impact of tariffs. For more details, read: CAT Q2 Earnings Miss Estimates, Down Y/Y on Tariff-Driven Cost Surge.Caterpillar generated an operating cash flow of $4.4 billion in the first half of 2025 compared with $5.07 billion in the prior-year comparable period.Few Bright Spots Worth Noting in CAT's Q2 ResultsCaterpillar reported a turnaround in volume performance in the second quarter of 2025, with a net volume increase of $237 million. This marks a recovery after six straight quarters of volume declines. The rebound was largely driven by a $326 million boost in the Energy & Transportation (E&T) segment, which offset volume declines of $83 million in Construction Industries and $13 million in Resource Industries.CAT has been impacted by the downturn in China's real estate sector, particularly for 10-ton and larger excavators, which were once a key market for the company. The company recently pointed out that China has shown positive momentum this year and it expects growth 10-ton and above excavator industry.Caterpillar ended the quarter with a solid backlog of $37.5 billion.Caterpillar Updates Outlook for 2025CAT now expects 2025 revenues to be slightly higher than 2024, an improvement from its prior projection of flat revenues.The company outlined its expectations for 2025 operating margins, including and excluding net incremental tariffs of around $1.3-$1.5B. Excluding tariffs, adjusted operating margin is expected to be in the top half of its target range, corresponding to the anticipated level of revenues. Considering the impact of tariffs, Caterpillar expects the adjusted operating margin to be in the bottom half of its target range.The company maintains its revenue projection at $42-$72 billion, and margins are anticipated between 10% and 22%, per the respective revenue levels.CAT Sees Mixed Estimate Revision ActivityEarnings estimates for CAT have moved down 1.66% for 2025 over the past 60 days. However, the estimate for 2026 has moved up 0.85%.The Zacks Consensus Estimate for 2025 indicates a year-over-year decline of 16%. The same for 2026 implies 15.7% growth.Caterpillar Continues to Battle Industry PressuresThe U.S. manufacturing sector underwent a 26-month contraction till December 2024. Even though the Institute for Supply Management's manufacturing index showed expansion in January and February with readings above 50%, it was short-lived, with the index slipping to 49% in March. It has remained in contraction for five months now, with the last reading at 48% in July.The New Orders Index has been in contraction for six months, with a July reading of 47.1%. Rising concerns over tariffs led customers to scale back orders.Caterpillar's Premium ValuationCAT is currently trading at a forward 12-month P/E of 20.51X, at a premium compared with the industry's 19.46X. It's Value Score of D suggests a stretched valuation at this moment.Meanwhile, Komatsu, Terex and Manitowoc are cheaper options, trading at a forward 12-month P/E of 12.06X, 9.6X and 12.08X, respectively.CAT's Long-Term Growth Drivers Remain IntactDespite short-term challenges, Caterpillar's long-term outlook is supported by expected increases in U.S. infrastructure spending and growing demand for mining equipment due to the energy transition. As miners are increasingly relying on autonomy to increase productivity and efficiency and improve safety, CAT has been focusing on enhancing its autonomous fleet.In Energy and Transportation, the increased focus on sustainability and the establishment of data centers will drive the demand for Caterpillar's equipment. CAT has been seeing growth in aftermarket parts and service-related revenues, which generate high margins. The company is on track to double its service revenues from $14 billion in 2016 to $28 billion in 2026.Caterpillar Offers Attractive Dividend Yield & PayoutCAT's 1.80% dividend yield is higher than the sector's yield of 1.39% and the S&P 500's 1.15%. The company has a five-year dividend growth rate of 7.9% and a payout ratio of around 30.3%. Caterpillar has a solid track of paying out higher dividends to shareholders for 30 straight years.In comparison, Komatsu has a higher dividend yield of 3.85%. Terex has a dividend yield of 1.34% and Manitowoc currently does not pay any dividends.How Should Investors Approach CAT Stock Now?Caterpillar's premium valuation, coupled with ongoing declines in revenues and earnings, industry pressures and downward estimate revision activity for the current year, suggests caution for new investors.Existing shareholders should stay invested in Caterpillar's stock to benefit from its solid long-term demand prospects, backed by infrastructure spending and energy-transition trends, as well as its focus on growing service revenues. CAT's strong financial position enables it to invest in its businesses and return cash to shareholders through share buybacks and consistent dividend payments. The company currently has a Zacks Rank #3 (Hold), which supports our thesis.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.com                                      https://www.zacks.com                                                 Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Manitowoc Company, Inc. (MTW): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Terex Corporation (TEX): Free Stock Analysis Report Komatsu Ltd. (KMTUY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks