By Adam Spatacco, The Motley Fool
Publication Date: 2025-11-24 08:26:00
Caterpillar stock has surged 52% so far this year.
Given Nvidia‘s prominence in the market’s biggest megatrend — the artificial intelligence (AI) revolution — it’s nearly unthinkable to consider that large cap stocks in other industries could be outperforming the semiconductor giant.
So far this year, shares of industrials specialist Caterpillar (CAT +0.79%) have gained 52% — making it the top-performing stock in the Dow Jones Industrial Average (^DJI +1.08%). Moreover, Caterpillar’s performance handily outpaces Nvidia’s 2025 gains of roughly 40%.
Let’s examine what is fueling Caterpillar’s rally and assess whether the stock still remains a compelling buy.
Image source: Getty Images.
What is fueling Caterpillar stock this year?
Caterpillar’s business is split into three categories: construction, resource industries, and energy and transportation.
Today’s Change
(0.79%) $4.30
Current Price
$550.43
Key Data Points
Market Cap
$258B
Day’s Range
$537.08 – $554.99
52wk Range
$267.30 – $596.21
Volume
898
Avg Vol
2.8M
Gross Margin
33.45%
Dividend Yield
1.06%
Through the first nine months of 2025, Caterpillar generated $48.5 billion in revenue — essentially flat year over year. In addition, the company’s operating profit of $8.5 billion is roughly 16% lower compared to 2024 levels.
This isn’t exactly the most robust financial profile. This raises the question: Why are investors cheering on Caterpillar stock? I see a couple of reasons for the rally.
First, the company’s expense profile has…
