Caterpillar is a global leader in mobile machinery manufacturing. CAT should be one of the best companies in the next few years, thanks to a robust resurgence in commodities and increased CAPEX. Read on to learn why it's still a buy following a strong third-quarter performance. Caterpillar (CAT) is one of the world's leading manufacturers of mobile machinery. The stock price of the corporation is sometimes used as a barometer for global expansion.Caterpillar introduces new machine logo - Equipment Journal

Due to increasing levels of infrastructure spending, a healthy housing market, a recovery in the industrial sector, and high levels of CAPEX that are likely to persist over the next decade, the post-pandemic economy has been beneficial for CAT. As a result, CAT's stock has increased by more than 130 percent since its March 2020 lows.

Despite these gains, the company is still reasonably priced, with a price-to-earnings ratio (P/E) below that of the S&P 500. Longer-term fundamentals remain bullish, and the 20% drop in the stock price is a good risk/reward entry point.