Caterpillar: Buy, Sell, or Hold

The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Brendan Byrnes discusses topics across the investing world.

In today's edition, Brendan gives his opinion on whether Caterpillar is a buy, a sell, or a hold. The construction equipment giant was once the second-best performer on the Dow early in 2012, but it has fallen hard recently due to concerns about Europe and the macro economy. Brendan thinks Caterpillar is extremely attractive at its current price, and he rates the company as a buy. Caterpillar should continue to benefit from robust mining growth, especially after its acquisition of Bucyrus last year. Additionally, the company continues to be an innovator and is looking dirt cheap trading at just eight times forward earnings. Check out the video below for more reasons why Brendan rates Caterpillar as a buy.

Caterpillar looks like a solid outperformer in the long run, but we've come across a different stock that has us so excited we can hardly contain our investing enthusiasm. This pick has so much promise that we've dubbed it "The Motley Fool's Top Stock for 2012." We've created a special free report for investors to uncover this soon-to-be rock star. The report highlights a company that is revolutionizing commerce in Latin America, and you can get instant access to the name of this company by clicking here to download it now.

At the time thisarticle was published Brendan Byrnesowns shares of Caterpillar. The Motley Fool owns shares of Westport Innovations.Motley Fool newsletter services recommendCummins and Westport Innovations. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.