Caterpillar Inc. (NYSE:CAT) surged YTD despite Michael Burry's short and a ~4.6% session drop, driven by Q1 Power & Energy sales up 22% and aggressive expansion—turbine output rising 2.5x and large engine capacity 3x—while valuation sits near 39x forward P/E and 6x P/S.

Previous Week Recap

  • Burry Shorted Caterpillar Surges: Michael Burry shorted Caterpillar (CAT). Shares fell ~4.6% in session. Q1 Power & Energy sales +22% YoY. Stock up ~86% YTD, ~172% 12‑month. Forward P/E ~39x, P/S ~6x.
  • Caterpillar Expands Manufacturing Capacity: Caterpillar will expand manufacturing: turbine output to rise 2.5x and large reciprocating engine capacity to 3x versus 2024, detailing planned changes to its industrial production footprint.

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