Caterpillar Stock Drop Looks Sharp, But How Deep Can It Go?

Caterpillar (CAT) stock has recently dropped 8.3% over five trading days due to valuation concerns and rising tariff costs. Despite this, the company exhibits moderate operational performance and high valuation, making the stock currently unattractive based on Trefis metrics. The article further analyzes CAT’s historical performance during economic downturns, showing that it has often fared worse than the S&P 500 but generally recovered, albeit sometimes slower than the broader market.