Bull of the Day: Caterpillar (CAT) Caterpillar Company Overview Zacks Rank #1 (Strong Buy) company Caterpillar (CAT), known for its iconic yellow machines, is the largest global construction and mining equipment manufacturer. Given that it serves a gamut of sectors - infrastructure, construction, mining, oil & gas and transportation, the company is considered a bellwether of the global economy. Since 1925, Caterpillar’s product portfolio has evolved and boasts 20 brands and generated revenues of $67.6 billion in 2025. It has more than 4 million products with an extensive dealer network of 156 dealers spanning 190 countries. Caterpillar started using telematics in the 1990s and reached its target of 1 million connected assets in 2019. It currently has more than 1.5 million connected assets. The combination of innovation, and cutting-edge technology, coupled with the formidable reputation, set Caterpillar apart from its peers. Benefitting from the AI Data Center Boom The artificial intelligence and cloud computing boom has transformed this legacy industrial giant into a crucial "picks and shovels" player for the physical layer of the AI revolution. The defining challenge for hyperscale AI data centers is securing enough electrical power, and connecting a massive campus to the traditional utility grid can take years due to regulatory hurdles, transmission line shortages, and grid capacity constraints. To bypass these delays, data center developers are increasingly choosing to skip the grid entirely or build decentralized, on-site power infrastructure to accelerate their time to market, which has sparked an unprecedented surge in demand for Caterpillar's Energy & Transportation segment. Developers are deploying massive arrays of Caterpillar's natural gas and diesel reciprocating engines, as well as industrial gas turbines through its Solar Turbines subsidiary, to generate electricity directly on-site and provide the continuous, high-output baseload reliability that compute-heavy AI workloads demand. Record Backlog Provides Future Revenue