Caterpillar is one of the world’s leading industrial companies and is poised for some growth in the next few years, industry analysts say.
The company’s shares hit record highs in recent weeks, most recently a high of $ 203.29 on February 16.
Rising commodity prices, the expected increase in construction activity and possibly new infrastructure legislation in Washington are positive signs for Caterpillar in the near future.
This is good news for a company that has been going through hard times in recent years. The company bet heavily on expanding its mining equipment business about a decade ago, when commodity prices were high, to keep prices falling again. Caterpillar sales also fell.
Since then, the company known for its large yellow iron equipment has been restructured and is developing several new products and solutions that could contribute to its growth, including self-driving vehicles, remote-controlled equipment and telematics software.
Meanwhile, analysts say rising commodity prices are a sign that at least some parts of the world are ready to return to work.