Caterpillar $CAT - another one. -9% yesterday. How many times will we see something like this? Excellent company? Yes. AI beneficiary? Yes. But it spent 25 years in a sales multiple range of 1x - 3x. Then in 2025/6, hype took it to 7x. Now, it's crashing back down to earth, down 40% from its recent highs in July. Reaching the GFC lows of 1x sales would imply a further 75% to fall from here. Yes, the pre-bubble average of 2x sales is closer, but "the average is just something you pass through on the way to the other extreme."

Caterpillar posted quarterly earnings that beat Wall Street expectations as soaring electricity needs from AI data centers continued to drive demand for the company’s power-generation equipment

Caterpillar Q3 2026 Earnings - Rev: $20.68B (est $20.65B) - Adj EPS: $7.20 (est $7.10) - Adj Oper Income: $4.26B (est $4.09B) - Machinery, Power & Energy Revenue: $19.65B (est $19.65B) - Financial Revenue: $1.03B (est $1B)