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Traders on the New York Stock Exchange floor look up at screens during Wednesday's market decline
Photo: Investing.com / Reuters

Caterpillar Stock Falls 5.7% After Zacks Downgrade to Hold

SEC / Caterpillar Inc.2 min read6 sources

Why did Caterpillar stock fall 5.7%?

Caterpillar (CAT) stock fell 5.7% to $813.83 on Wednesday after Zacks Research cut its rating to Hold, a drop that dragged the Dow down 0.66%.

Key numbers

CAT closing price$813.83-5.75% on the day
Dow Jones close51,179.87-0.66% on the day
CAT share of Dow losses~86%per Yahoo Finance only
52-week high$1,073.46stock ~24% below
Q2 2026 sales and revenues$20.5B+24% YoY, a company record

What happened

Caterpillar (CAT) stock fell 5.7% to $813.83 on Wednesday after Zacks Research cut its rating to Hold, a drop that dragged the Dow down 0.66%. Zacks moved the stock from "Strong Buy" to "Hold," meaning it no longer expects the shares to beat the market. Caterpillar alone made up about 86% of the Dow's losses (per). Farm-equipment makers Deere, CNH and AGCO also fell about 5% to 6% after US regulators asked the public for comment on how farm machinery is sold.

Why it matters

Caterpillar is one of the 30 companies in the Dow, a widely followed stock index, so a big drop in its shares can pull the whole index down. The stock now sits about 24% below its 52-week high of $1,073.46, and it is still priced at more than 37 times its yearly profit (the P/E ratio). That high price leaves little room for disappointment ahead of its next earnings report.

Who this affects

Marketbearish
Medium impact
Dow investors saw an index loss led by one stock.
Companybearish
Medium impact
Shareholders lost value; the rating cut adds pressure before earnings.
Competitorsbearish
Medium impact
Deere, CNH and AGCO also fell roughly 5% to 6%.
Industrybearish
Medium impact
Farm-equipment makers face regulator questions about dealer contracts and fees.

Caterpillar vs Deere, CNH Industrial, AGCO

CaterpillarCAT$813.83-5.75%—
DeereDE$661.21-5.0%—
CNH IndustrialCNH$12.56-5.7%29.4x
AGCOAGCO$109.59-5.9%20.1x

As of 2026-10-07

How we got here

  1. Caterpillar reports record second-quarter sales and revenues of $20.5B, up 24% from a year earlier.

  2. Truist cuts its Caterpillar price target to $1,100 from $1,225 (per).

  3. Zacks Research cuts Caterpillar to Hold; shares close down 5.75% and the Dow falls 0.66%.

  4. FTC and USDA seek public input on farm-equipment markets; Deere, CNH and AGCO fall.

What to watch

  • Caterpillar's third-quarter earnings report, expected Oct 29; some sites list Nov 4 instead.2026-10-29
  • Whether the FTC and USDA inquiry into farm-equipment markets widens to more manufacturers.Q4 2026
  • Bond yields: the 10-year Treasury sits at 5.27% and the 30-year at a 24-year high.Q4 2026

Educational content only. Not investment advice.

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