Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTTrefis TeamFri, September 4, 2026 at 8:56 PM GMT+2 4 min readImage by Peter Dargatz from PixabayCaterpillar's stock is the undisputed champion of its group, but its business performance isn't. The market is betting on a future that hasn't fully arrived.Caterpillar (CAT) stock has delivered a stunning +95% return over the last twelve months, significantly outpacing its industrial peers. An investor looking only at that chart would assume they'd found the runaway leader of the heavy equipment world. But a look at the underlying business shows a different ranking, with Caterpillar sitting second on key metrics like revenue growth and operating margin. The stock's outsize return appears to have run far ahead of its fundamentals, unless the market is correctly pricing in a business transformation the numbers have yet to fully reflect.The stock trades like a leader, but the numbers show a close race.In any competitive group, price should follow performance. Yet Caterpillar's stock performance stands apart from its operational rank. The company's 18.4% revenue growth over the last twelve months is strong, but it's second in its peer group. Its 17.5% operating margin is also second-best, narrowly trailing rival Deere. That performance has earned it a valuation of 34.0 times earnings, making it the third-priciest stock in the group.The contrast with Deere is particularly sharp. Deere trades at a higher multiple of 38.4 times earnings and posts a slightly better operating margin of 17.6%, yet its revenue grew just 8.0% over the same period. Investors have rewarded Caterpillar with a +95% return, far outpacing Deere's +50%. The market is clearly rewarding Caterpillar's faster growth with a share price rally, even if its valuation multiple still trails slower-growing Deere.CATDEPCARCMITEXOSKMarket Cap ($ Bil)368.4187.465.675.27.19.8PE Ratio34.038.426.227.747.817.5LTM Revenue Growth18.4%8.0%-10.6%2.9%29%2.2%LTM Operating Margin17.5%17.6%10.0%11.1%5.7%7.5%12M Stock Return95%50%33%41%29%15.9%A surging backlog is rewriting the company's story.The market's enthusiasm is rooted in a powerful shift within Caterpillar's business, driven by outperformance in Construction and Resource Industries alongside steady demand in Power & Energy. The company just delivered its first-ever quarter with sales over $20 billion, driven by what management calls "strong end market demand in all 3 of our primary segments." This demand has built a large backlog of $72 billion, giving the company unusual visibility into future sales. Some of that visibility extends for years, with management noting that customers are "placing orders as far out as 2030."Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info