Caterpillar Inc. is listed among the 14 Best Dividend Aristocrats to Invest in Heading into 2026. Bernstein raised its price target on Caterpillar to $630 from $557 and kept a Market Perform rating, expecting a recovery in 2026 driven by tighter monetary and fiscal policy alignment.

Caterpillar’s AI-driven rally recently lost momentum, leading to questions about the durability of the trade. The stock fell 9.6% over five sessions but rebounded by nearly 1%. The company’s unexpected AI association stems from a unit selling gas turbines used in data centers, contributing to a 60% rise in the stock this year.

Caterpillar is the world’s leading manufacturer of construction and mining equipment, as well as other related products and services globally. Despite its potential as an investment, other AI stocks may offer greater upside potential and less downside risk.

For those seeking an undervalued AI stock with potential benefits from tariffs and the onshoring trend, a free report on the best short-term AI stock is available.

Read more at Yahoo Finance: Bernstein Raises Caterpillar (CAT) Target as 2026 Recovery Comes Into View