Per my recent interview with CNBC Asia, Caterpillar (CAT) is a great value stock right now.

Investors should pay little mind to recent short-term trends such as falling EPS, estimates and stock price and focus on the strong long-term fundamentals of this business.

The current valuation of the stock implies the company’s profits will permanently decline by 20%.

With a valuation that low, investors should not be surprised that the stock rose nearly 3% on a day when the S&P 500 was up less than 0.5% even though it missed its EPS targets and lowered guidance slightly.


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