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CAT vs TEX
Which Stock Would AI Choose? Caterpillar (CAT) vs. Terex (TEX) Stock Comparison
Key Takeaways
- CAT is a diversified heavy-equipment and energy powerhouse with a record backlog near $72 billion, driven by surging demand for power-generation equipment tied to data centers.
- TEX is a smaller, specialized equipment maker that recently broadened its portfolio through the REV Group acquisition and has been scaling its backlog to roughly $7.1 billion.
- Recent weeks have pressured both names, with CAT retreating from elevated levels while TEX has pulled back after a strong multi-month run.
- CAT offers a larger, more established earnings base and broader cyclical exposure, whereas TEX presents a more diversified special-vehicle and materials-processing footprint at a much smaller market capitalization.
- Tariffs and cyclical demand remain shared risk factors, while artificial intelligence (AI)-related power demand is a more direct catalyst for CAT than for TEX.
- For additional context, explore CAT Major News and CAT Today's Price Move, as well as TEX Major News and TEX Today's Price Move, on their dedicated ticker pages.
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Introduction
Caterpillar and Terex both operate in the industrial machinery space, yet they serve investors with very different profiles. This stock comparison is relevant to traders and investors weighing a large-cap, diversified industrial leader against a smaller, more specialized equipment manufacturer. The two companies differ meaningfully in scale, market positioning, and growth drivers, which makes their relative performance a useful lens for understanding current sentiment across the machinery and construction sector. Readers focused on cyclical recovery, infrastructure spending, or AI-driven power demand may find this side-by-side analysis particularly useful when evaluating market positioning and momentum.
CAT Overview and Recent Performance
Caterpillar Inc. is one of the world's largest manufacturers of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. In recent market activity, CAT shares have pulled back meaningfully from their 52-week highs, with the stock retracing well off its peak even as its year-to-date performance remains positive. This retreat has occurred despite strong fundamentals, including a record backlog that management has cited as a foundation for continued momentum.
A key driver of the recent narrative has been the company's Power & Energy segment, where power-generation sales have accelerated sharply on demand for large generator sets and turbines used in data center applications. Customer orders extending years into the future have supported a backlog that has roughly doubled on a year-over-year basis. At the same time, tariff costs and questions about the durability of AI-related capital spending have contributed to caution among investors. A planned capital investment to expand manufacturing capacity in North Carolina highlights management's long-term commitment, even as near-term sentiment has cooled.
TEX Overview and Recent Performance
Terex Corporation manufactures specialized equipment serving essential sectors including aerial work platforms, materials processing, utilities, waste and recycling, and, following its acquisition of REV Group, specialty vehicles. In recent market activity, TEX shares have pulled back over the past several weeks after a notably strong stretch, and the stock has drifted modestly lower on a year-to-date basis while remaining well above its 52-week low.
The company's transformation has been a central theme, with the REV integration now operating as its Specialty Vehicles segment and contributing meaningful revenue. Terex has reported growth across its segments and a healthy backlog, which management has described as providing solid forward visibility. The company has also been executing on cost synergies tied to the acquisition. However, tariff headwinds, unfavorable product mix in certain businesses, and the inherent cyclicality of its end markets have weighed on margins and investor sentiment. Analysts have responded with a mix of rating and price-target adjustments as the integration progresses.
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Head-to-Head Comparison
The clearest contrast between the two companies is scale and diversification. CAT commands a market capitalization in the hundreds of billions and spans mining, construction, energy, and financial services, while TEX is a multi-billion-dollar specialized equipment maker with a narrower, though recently broadened, product lineup. This difference shapes their growth drivers: CAT benefits directly from AI-related power demand and global infrastructure, whereas TEX leans on utilities, waste and recycling, materials processing, and specialty vehicles.
On valuation, CAT trades at a premium earnings multiple relative to the broader market, reflecting expectations for durable power-driven growth, while TEX carries a lower trailing multiple in part due to acquisition-related charges and integration costs. Risk profiles also differ: both face tariff exposure and cyclical sensitivity, but CAT carries concentration risk around data-center-linked orders, while TEX faces execution and integration risk as it digests REV. Recent momentum has favored neither decisively, as both have corrected from higher levels amid broader industrial-sector caution.
Tickeron AI Verdict
Based on observable factors, Tickeron's AI would likely lean toward CAT at this juncture, reflecting the strength and durability of its record backlog, the consistency of its earnings base, and a clearer long-term catalyst in the form of data-center power demand. That said, the stock's elevated valuation and sensitivity to AI capital-spending sentiment introduce meaningful two-way risk. TEX offers an attractive transformation story and improving backlog, but its smaller scale and integration-related variables make its trend comparatively less established. The relative positioning favors CAT on stability and catalyst visibility, while acknowledging that near-term momentum remains unsettled across both names.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is CAT is a Hold and TEX is a StrongBuy.
CAT in +8.17% Uptrend, advancing for three consecutive days on November 09, 2026
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where CAT advanced for three days, in 277 of 378 cases, the price rose further within the following month. The odds of a continued upward trend are 73%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where CAT's RSI Oscillator exited the oversold zone, 18 of 27 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 67%.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 7 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
CAT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 08, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on CAT as a result. In 37 of 72 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 51%.
The Moving Average Convergence Divergence Histogram (MACD) for CAT turned negative on October 09, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In 21 of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at 48%.
CAT moved below its 50-day moving average on October 07, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for CAT crossed bearishly below the 50-day moving average on October 13, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 8 of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 57%.
The 50-day moving average for CAT moved below the 200-day moving average on October 21, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CAT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 57%.
The Aroon Indicator for CAT entered a downward trend on November 10, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 19 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is 51 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is 65 (best 1 - 100 worst), indicating fairly steady price growth. CAT’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 70 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 88 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: CAT's P/B Ratio (13.240) is very high in comparison to the industry average of (2.277). P/E Ratio (23.934) is within average values for comparable stocks, (3.106). Projected Growth (PEG Ratio) (1.435) is also within normal values, averaging (1.745). Dividend Yield (0.012) settles around the average of (0.017) among similar stocks. CAT's P/S Ratio (4.892) is very high in comparison to the industry average of (1.169).
TEX's RSI Indicator ascends from oversold territory
The RSI Indicator for TEX moved out of oversold territory on October 12, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 27 similar instances when the indicator left oversold territory. In 24 of the 27 cases the stock moved higher. This puts the odds of a move higher at 89%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 28, 2026. You may want to consider a long position or call options on TEX as a result. In 63 of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 76%.
The Moving Average Convergence Divergence (MACD) for TEX just turned positive on October 20, 2026. Looking at past instances where TEX's MACD turned positive, the stock continued to rise in 32 of 46 cases over the following month. The odds of a continued upward trend are 70%.
TEX moved above its 50-day moving average on November 09, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for TEX crossed bullishly above the 50-day moving average on November 10, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 10 of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 56%.
Following a +6.83% 3-day Advance, the price is estimated to grow further. Considering data from situations where TEX advanced for three days, in 209 of 290 cases, the price rose further within the following month. The odds of a continued upward trend are 72%.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The 50-day moving average for TEX moved below the 200-day moving average on October 07, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TEX declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 67%.
TEX broke above its upper Bollinger Band on November 02, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for TEX entered a downward trend on October 21, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 14 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 48 (best 1 - 100 worst), indicating steady price growth. TEX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 57 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.276) is normal, around the industry mean (2.277). P/E Ratio (25.563) is within average values for comparable stocks, (3.106). Projected Growth (PEG Ratio) (1.038) is also within normal values, averaging (1.745). Dividend Yield (0.012) settles around the average of (0.017) among similar stocks. P/S Ratio (0.755) is also within normal values, averaging (1.169).
The Tickeron Profit vs. Risk Rating rating for this company is 61 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock slightly better than average.
The Tickeron SMR rating for this company is 84 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
CAT | TEX | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 55 | 29 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 88 Overvalued | 57 Fair valued | |
PROFIT vs RISK RATING 1..100 | 51 | 61 | |
SMR RATING 1..100 | 19 | 84 | |
PRICE GROWTH RATING 1..100 | 65 | 48 | |
P/E GROWTH RATING 1..100 | 70 | 14 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
TEX's Valuation (57) in the Trucks Or Construction Or Farm Machinery industry is in the same range as CAT (88). This means that TEX’s stock grew similarly to CAT’s over the last 12 months.
CAT's Profit vs Risk Rating (51) in the Trucks Or Construction Or Farm Machinery industry is in the same range as TEX (61). This means that CAT’s stock grew similarly to TEX’s over the last 12 months.
CAT's SMR Rating (19) in the Trucks Or Construction Or Farm Machinery industry is somewhat better than the same rating for TEX (84). This means that CAT’s stock grew somewhat faster than TEX’s over the last 12 months.
TEX's Price Growth Rating (48) in the Trucks Or Construction Or Farm Machinery industry is in the same range as CAT (65). This means that TEX’s stock grew similarly to CAT’s over the last 12 months.
TEX's P/E Growth Rating (14) in the Trucks Or Construction Or Farm Machinery industry is somewhat better than the same rating for CAT (70). This means that TEX’s stock grew somewhat faster than CAT’s over the last 12 months.
| CAT | TEX | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 67% | 2 days ago 89% |
| Stochastic ODDS (%) | 2 days ago 69% | 2 days ago 81% |
| Momentum ODDS (%) | 3 days ago 51% | 2 days ago 76% |
| MACD ODDS (%) | 2 days ago 48% | 2 days ago 70% |
| TrendWeek ODDS (%) | 2 days ago 60% | 2 days ago 71% |
| TrendMonth ODDS (%) | 2 days ago 63% | 2 days ago 69% |
| Advances ODDS (%) | 3 days ago 73% | 3 days ago 72% |
| Declines ODDS (%) | 7 days ago 57% | 16 days ago 67% |
| BollingerBands ODDS (%) | 2 days ago 70% | 2 days ago 76% |
| Aroon ODDS (%) | 2 days ago 64% | 2 days ago 69% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
CAT’s FA Score shows that 1 FA rating(s) are green while TEX’s FA Score has 1 green FA rating(s).
- CAT’s FA Score: 1 green, 4 red.
- TEX’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
CAT’s TA Score shows that 4 TA indicator(s) are bullish while TEX’s TA Score has 6 bullish TA indicator(s).
- CAT’s TA Score: 4 bullish, 7 bearish.
- TEX’s TA Score: 6 bullish, 5 bearish.
Price Growth
CAT (@Trucks/Construction/Farm Machinery) experienced а -6.31% price change this week, while TEX (@Trucks/Construction/Farm Machinery) price change was -0.51% for the same time period.
The average weekly price growth across all stocks in the @Trucks/Construction/Farm Machinery industry was -3.30%. For the same industry, the average monthly price growth was -7.11%, and the average quarterly price growth was +2.56%.
Reported Earning Dates
CAT is expected to report earnings on Feb 04, 2027.
TEX is expected to report earnings on Feb 11, 2027.
Industries' Descriptions
@Trucks/Construction/Farm Machinery (-3.30% weekly)The industry designs and builds agricultural, construction and other large commercial and transportation equipment. Tractors, planters and harvesters, as well as rock-crushing, railroad, demolition and other construction implements are produced by this industry. Rapid urbanization and industrialization has been bolstering the expansion of the construction sector in the past few decades, thereby boosting demand for heavy equipment businesses. Caterpillar Inc., Deere & Company and Cummins Inc (Ex. Cummins Engine Inc) are some prominent companies in this industry.
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CAT and
Correlation & Price change
A.I.dvisor indicates that over the last year, CAT has been loosely correlated with TEX. These tickers have moved in lockstep 58% of the time. This A.I.-generated data suggests there is some statistical probability that if CAT jumps, then TEX could also see price increases.
TEX and
Correlation & Price change
A.I.dvisor indicates that over the last year, TEX has been closely correlated with OSK. These tickers have moved in lockstep 69% of the time. This A.I.-generated data suggests there is a high statistical probability that if TEX jumps, then OSK could also see price increases.
| Ticker / NAME | Correlation To TEX | 1D Price Change % | ||
|---|---|---|---|---|
| TEX | 100% | -1.72% | ||
| OSK - TEX | 69% Closely correlated | +0.18% | ||
| MTW - TEX | 60% Loosely correlated | -0.37% | ||
| CAT - TEX | 60% Loosely correlated | -2.39% | ||
| ASTE - TEX | 55% Loosely correlated | -1.81% | ||
| PCAR - TEX | 55% Loosely correlated | +0.18% | ||
More | ||||
| 1 Day | |||
|---|---|---|---|
| ETFs / NAME | Price $ | Chg $ | Chg % |
| GIND | 25.51 | 0.15 | +0.59% |
| Goldman Sachs India Equity ETF (GIND) | |||
| ACLO | 50.47 | 0.04 | +0.08% |
| TCW AAA CLO ETF (ACLO) | |||
| NETL | 24.38 | -0.13 | -0.51% |
| Colterpoint Net Lease Real Estate ETF (NETL) | |||
| DIHP | 34.10 | -0.28 | -0.80% |
| Dimensional International High Profitability ETF (DIHP) | |||
| MVRL | 8.64 | -0.32 | -3.62% |
| ETRACS Monthly Pay 1.5x Leveraged Mortgage REIT ETN (MVRL) | |||