Caterpillar Stock Alpha and Beta Analysis
| CATR Stock | 54.99 0.69 1.24% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Caterpillar. It also helps investors analyze the systematic and unsystematic risks associated with investing in Caterpillar over a specified time horizon. Remember, high Caterpillar's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to Caterpillar's market risk premium analysis include:
Beta 0.27 | Alpha 0.47 | Risk 2.2 | Sharpe Ratio 0.27 | Expected Return 0.58 |
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
Caterpillar |
Caterpillar Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Caterpillar market risk premium is the additional return an investor will receive from holding Caterpillar long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Caterpillar. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Caterpillar's performance over market.| α | 0.47 | β | 0.27 |
Caterpillar expected buy-and-hold returns
Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Caterpillar's Buy-and-hold return. Our buy-and-hold chart shows how Caterpillar performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Caterpillar Market Price Analysis
Market price analysis indicators help investors to evaluate how Caterpillar stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Caterpillar shares will generate the highest return on investment. By understating and applying Caterpillar stock market price indicators, traders can identify Caterpillar position entry and exit signals to maximize returns.
Caterpillar Return and Market Media
The median price of Caterpillar for the period between Thu, Nov 20, 2025 and Wed, Feb 18, 2026 is 43.19 with a coefficient of variation of 9.26. The daily time series for the period is distributed with a sample standard deviation of 4.11, arithmetic mean of 44.45, and mean deviation of 3.22. The Stock received substential amount of media coverage during this period. Price Growth (%) |
| Timeline |
1 | Caterpillar CFO Bonfield sells 5.7 million in stock - Investing.com | 12/02/2025 |
2 | Investors Heavily Search Caterpillar Inc. Here is What You Need to Know - Yahoo Finance | 12/10/2025 |
3 | Caterpillars Surging Stock Is Fueled by AI, Not Yellow Excavators - The Wall Street Journal | 12/30/2025 |
4 | LS Investment Advisors LLC Sells 2,694 Shares of Caterpillar Inc. CAT - MarketBeat | 01/05/2026 |
5 | Caterpillar Stock Hits This Milestone. Yes, Its AI. - Barrons | 01/13/2026 |
6 | Caterpillar Inc. CAT Shares Bought by Vanguard Personalized Indexing Management LLC - MarketBeat | 01/26/2026 |
7 | Oppenheimer raises Caterpillar stock price target on strong backlog growth - Investing.com | 01/29/2026 |
8 | Rothschild Co Redburn Issues Positive Forecast for Caterpillar Stock Price - MarketBeat | 02/04/2026 |
9 | Caterpillar, Nike share gains contribute to Dows nearly 250-point jump - MSN | 02/13/2026 |
About Caterpillar Beta and Alpha
For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Caterpillar or other stocks. Alpha measures the amount that position in Caterpillar has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Caterpillar in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Caterpillar's short interest history, or implied volatility extrapolated from Caterpillar options trading.
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Check out Caterpillar Analysis, Caterpillar Valuation, Caterpillar Correlation, Caterpillar Hype Analysis, Caterpillar Volatility, Caterpillar Price History and analyze Caterpillar Performance. For information on how to trade Caterpillar Stock refer to our How to Trade Caterpillar Stock guide.You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Caterpillar technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.