New York, Jan 15, 2026, 1:35 PM ET — Regular session
- Caterpillar shares rose by nearly 2% in afternoon trading, staying close to their recent peaks
- Rod Shurman will take over as head of Construction Industries starting Feb. 1, the company announced
- Investors remain fixated on data-center power demand, a key driver behind the rally
Caterpillar Inc. shares climbed Thursday, building on a solid streak as investors digested a leadership shakeup at the construction equipment giant and maintained confidence in power demand linked to data centers.
The stock climbed 1.8% to $650.46 in afternoon trading, having peaked at $652.30 earlier in the session.
This shift is significant since Caterpillar has turned into a heavily favored industrial play: investors have driven the stock up, betting its energy and transportation gear will benefit from a surge in spending on data centers and power infrastructure.
Caterpillar’s market cap topped $300 billion briefly on Tuesday, Bloomberg News reported, driven by a record intraday stock high. “Power generation is the fastest growing part of their business,” said Bloomberg Intelligence analyst Christopher Ciolino. (Equipment Finance News)
Late Wednesday, Caterpillar announced that Tony Fassino, group president of Construction Industries, will retire on May 31. Rod Shurman is set to step into the role starting Feb. 1. CEO Joe Creed remarked that Fassino’s “dedication and leadership will be missed.” (Caterpillar)
Analysts are growing more optimistic on the stock. Citigroup’s Kyle Menges bumped his price target to $710 from $690, holding firm on a “Buy” rating, according to GuruFocus. (GuruFocus)
The rally hasn’t been uniform among related names. Caterpillar has pulled ahead of some power-sector stocks that paused after a strong rally, Bloomberg reported, even as investors shift in and out of “AI” plays.
Some of the company’s key markets remain the wildcard. Wall Street is closely tracking construction and mining demand, sectors known for quick shifts tied to credit and commodity cycles, to see if they start to strengthen after recent lulls.
A lot can still go wrong. If data-center spending eases up or big power projects get delayed, the recent surge in power-generation orders might fade. That would leave the stock vulnerable to the usual concerns: dealer inventory, pricing pressure, and a wider industrial slowdown.
Investors have their sights set on the near term. Shurman takes over the Construction Industries role on Feb. 1, putting the company’s leadership change to the test against upcoming demand indicators as Caterpillar approaches its next earnings report.
