Caterpillar is back in focus after reporting record second quarter results and lifting its full year sales outlook, with demand tied to AI data center construction and power generation shaping the story. The most followed narrative places Caterpillar's fair value at $970.37, above the last close of $856.96, suggesting the stock could be 13% undervalued. Record backlog growth across all three primary segments, driven by strong global infrastructure demand particularly in North America, Africa, and the Middle East, positions the company for above-trend sales growth in late 2025 and into 2026. However, a separate discounted cash flow model estimates fair value at $796.40, indicating the stock may be overvalued if cash generation tracks that forecast. The stock has returned 107.3% over the past year but has pulled back 8.85% in the last 30 days.
