PREVIEW: Caterpillar earnings awaited as AI buildout eyed

** Caterpillar CAT.N shares up 0.4% at $716.37 on Weds ahead of Q3 results due before the bell on Thurs, with investors focused on AI-related demand

** Construction and power-generation equipment maker seen posting 16.5% yr/yr rise in qtrly rev to $20.54 bln and adj EPS of $7.08 vs $4.95 a yr-ago, per LSEG

** In its previous qtr, co reported a jump in profit, benefiting from a buildout of AI data centers, which investors will look for signs of continuing

** Last month, CAT announced a $1 bln investment to expand its North Carolina manufacturing capacity, citing rising demand for its compact equipment used in data center construction

** CAT's stock has jumped 25% YTD, outperforming the S&P 500's .SPX 13% gain and S&P 500 Industrials sector's .SPLRCI nearly 9% advance

** Stock recently traded at 22 times forward earnings, above its five-year avg of 18, suggesting a rich valuation; shares are ~33% below their all-time intraday high of $1,073.46 reached on June 30, 2026

** Of 30 analysts covering CAT, recommendation breakdown on the stock is 17 "strong buy" or "buy", 12 "hold" and 1 "sell"; median PT of $908 down from $967.50 a month ago