If You Invested $1000 in Caterpillar a Decade Ago, This is How Much It'd Be Worth Now

How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.

What if you'd invested in Caterpillar CAT ten years ago? It may not have been easy to hold on to CAT for all that time, but if you did, how much would your investment be worth today?

Caterpillar's Business In-Depth

With that in mind, let's take a look at Caterpillar's main business drivers.

Caterpillar, 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 billion in 2023. 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.

Caterpillar is the 41st largest company on the S&P 500 Index, with a market capitalization of around $191 billion. It holds the fifth position in the Dow Jones Industrial Average, with a 6.13% weight. It is also a member of the S&P 500 Dividend Aristocrat Index.

The Irving, TX-based company has six operating segments.

Machinery, Energy & Transportation (ME&T) (95.2% of total revenues in 2023) includes the Construction Industries segment, which manufactures machinery utilized in infrastructure, forestry and building construction.

The Resource Industries segment caters to customers using machinery in mining, quarry and aggregates, heavy construction, waste and material handling applications.

The Energy & Transportation segment supports customers in oil and gas, power generation, marine, rail and industrial applications.

All Other Segments primarily comprise activities such as re-manufacturing CAT engines and components and re-manufacturing services for other companies and product management, development, manufacturing, marketing and product support.

Financial Products Segment (5.9% of total revenues in 2023) provides retail and wholesale financing alternatives for Caterpillar products.

Bottom Line

Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Caterpillar ten years ago, you're likely feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in October 2014 would be worth $4,205.39, or a gain of 320.54%, as of October 8, 2024, and this return excludes dividends but includes price increases.

In comparison, the S&P 500 gained 194.35% and the price of gold went up 107.86% over the same time frame.

Going forward, analysts are expecting more upside for CAT.

Caterpillar's earnings have increased year over year for fourteen straight quarters aided by cost-saving and pricing actions. The Construction Industries segment will gain from the increased construction activities in the United States and globally. The mining sector will be bolstered by commodity demand driven by the energy transition trend, which will support the Resource Industries segment. Recovery in demand in China, boosted by the recent stimulus measures, will boost the need for Caterpillar's equipment. The Energy & Transportation segment is well-positioned for growth, backed by strong demand across all applications. Its dividend yield and payout ratio are higher than its peers. A solid liquidity position and Caterpillar's investments in expanding services and digital initiatives will help deliver exceptional returns.

The stock is up 19.22% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 3 higher, for fiscal 2024. The consensus estimate has moved up as well.

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