The Surprising Dow Stock That Has Outperformed Nvidia by 2-to-1

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Rich Duprey

Mon, March 30, 2026 astatine 4:41 AM CDT 5 min read

Caterpillar (CAT) delivered grounds full-year income of $67.6B successful 2025 with full-year adjusted EPS of $19.06, beating Q4 estimates of $4.70, portion ending the twelvemonth with a grounds $51.2B bid backlog and $11.7B successful operating currency flow. Nvidia (NVDA) roseate 50% implicit the past year, portion Caterpillar roseate 104%, outpacing the broader manufacturing-construction and mining manufacture by 104.2%. Deere (DE) posted inferior returns and little instrumentality connected equity astatine 21.97% compared to Caterpillar’s 47.16%, portion Komatsu saw weaker performance.
Caterpillar’s outperformance stems from tangible request for powerfulness procreation instrumentality and dense machinery needed for AI information halfway buildouts, mining operations for copper wiring, and infrastructure projects, supported by pricing powerfulness and a grounds backlog providing visibility into 2026, though tariff costs of $2.6B could compress margins and the banal trades astatine a premium 36.2x trailing P/E versus its five-year mean of 19x.
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While Wall Street fixated connected artificial quality chips and soaring tech valuations, 1 blue-chip Dow sanction delivered returns that near Nvidia (NASDAQ:NVDA) successful the dust. Over the past year, Caterpillar (NYSE:CAT) shares person risen 104%, much than treble Nvidia’s 50% gain. That outperformance came not from flashy semiconductors, but from yellowish machines moving ungraded for information centers, mines, and infrastructure projects.

So, let’s analyse what powered this quiescent Dow winner, whether the momentum holds, and what risks investors should watch.

According to Caterpillar’s fourth-quarter and full-year 2025 net merchandise successful January, the institution posted grounds full-year income and revenues of $67.6 billion. Fourth-quarter gross unsocial deed $19.1 billion, up 18% from the anterior year. Adjusted net reached $19.06 per stock for the year, with Q4 adjusted EPS astatine $5.16 -- beating estimates of $4.70. Enterprise operating currency travel totaled $11.7 billion, and the institution deployed $7.9 cardinal for stock repurchases and dividends.

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Those figures explicate the stock’s run. Higher volumes crossed construction, resource, and vigor segments drove growth, portion a displacement toward high-margin services added stability. Zacks information shows Caterpillar outperformed its Manufacturing - Construction and Mining manufacture peers by 104.2% versus the group’s 99% instrumentality implicit the past year. No substance however you portion it, Caterpillar turned real-world request into shareholder value.

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