Caterpillar is the top-performing stock in the Dow Jones this year, benefiting from rising infrastructure investments and AI demand. Despite frothy valuation, the stock’s long-term outlook remains strong. Caterpillar’s revenue is flat year over year, with a drop in operating profit. However, investors are optimistic about the company’s energy and transportation segment, particularly power generation. The company’s backlog is at an all-time high, driven by AI infrastructure investments. While Caterpillar’s stock has surged, its forward P/E ratio is at a three-year high. The company’s role in the AI infrastructure era makes it a compelling buy for long-term investors. Though not included in the top 10 stocks to buy now, Caterpillar’s potential in the AI sector makes it a premium investment opportunity.

Read more at Nasdaq: Caterpillar Is Quietly Beating Nvidia Stock This Year. Should You Buy It?