Nothing says manufacturing like Caterpillar (CAT). Those monster trucks made for earth-moving, digging and trucking are the epitome of making stuff in the good old USA.
Emerging markets are gaining confidence in building again, and a declining dollar makes Caterpillar equipment cheap for them. So, look for big sales gains in Caterpillar as the dollar drops.
I expect CAT stock to explode above $100 per share as a result of the weak dollar. My target is $120, but this stock could go to $150 simply on the strength of exports.
Dollar weakness has yet to be priced into Caterpillar, and I would buy this stock before the rest of the market figures out what is happening here.
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Reader Comments (Page 1 of 1)
11-15-2009 @ 8:39AM
mcjrn said...
I agree with the author. My money is on CAT. Their strongest competitor is the Japanese company KOMATSU, who have been very adept at turning out high-quality, CAT knock-offs at very competitive prices.
With the ever falling dollar, CAT is able to go head-to-head with KOMATSU both here and abroad in Asia or anywhere.