Caterpillar: AI growth fantasy turns short-term pullbacks into long-term opportunities

For Caterpillar (CAT), I view the pullback to the 50-day moving average as a potential long opportunity, provided that relative strength is recognizable soon. Although weak labor market data and Michael Burry's short position due to the highest P/S ratio in 30 years are weighing on the stock, the story is certainly on its way to new highs in the long term despite the heavily priced-in AI growth fantasy. Caterpillar is becoming less reliant on the cyclical construction equipment business through large backup generators, turbines, and distributed...