Caterpillar’s (NYSE: CAT) stock price increased nearly 35% in the last 6 months, driven largely by improved margins and improving global sentiment, which could boost global expenditures on infrastructure and mining activities. However, we believe that the market has already priced in these expectations, as the company’s stock is trading at all-time highs. Why The Stock Price Increased 35% In Last Six MonthsThe downturn in the mining and energy industry resulted in a more than 50% decline in Caterpillar’s EBITDA between 2013 and 2016. However, commodity prices improved in the last few quarters, and crude oil prices have remained around $50 per barrel in the last year. The other major factors contributing to Caterpillar’s increased stock price include the proposed tax rate cut and infrastructure bill in the U.S., and increased construction revenues in China.

Source: Forbes September 27, 2017 13:18 UTC