Michael Burry of Scion Asset Management has taken a new short position in Caterpillar at $1,060.98 per share, calling the stock's AI-driven advance an overinflated value bubble. Caterpillar's trailing P/E ratio is around 43.75x and its forward P/E stands at about 28.87x, while the company trades at over 31x EV/EBITDA, a significant premium over industrial peers like Cummins at 19.51x. The heavy equipment maker posted Q1 2026 revenue of $17.4 billion, up 22% year-over-year, with adjusted EPS of $5.54, and closed the quarter with a record $63 billion order backlog, a 79% year-over-year increase. However, Resource Industries segment margins fell over 700 basis points to 10% due to roughly $600 million in quarterly tariff charges, with full-year tariff headwinds expected at $2.2 billion to $2.4 billion. Oppenheimer raised Caterpillar's price target to $1,105 from $980 on July 13, maintaining an Outperform rating, while 87 hedge funds held stakes in the company at the end of Q1 2026, led by Ken Fisher's Fisher Asset Management with a $6.92 billion position.
Caterpillar Inc
Cummins Inc
Oppenheimer Holdings Inc