Caterpillar (NYSE:CAT) reported earnings this morning and I simply had to share the results with you. CAT is one of our favorite stocks, and this may be an important point to get in on the stock, so let’s take a look with at the opportunity.

The Company

If you’re not familiar with the company, CAT products range from industrial gas turbines to mini excavators. If you need heavy equipment to mine, build or do just about anything, you need Caterpillar.

Earnings Buzz

With the slow progress of the U.S. recovery, you would think that CAT would experience slow but steady gains. Not the case.

In earnings released this morning, CAT announced that sales were up 23%, earnings per share were up 15.7% and that the company increased quarterly profits by 29%! And while the company reiterated its revenue guidance for the upcoming quarter, it raised its profit outlook from $9.25 a share to $9.50 a share.

Current Ratings

This is an incredible report for the company and I expect that CAT’s already strong fundamentals will get boosted by the announcement.

CAT had been struggling with earnings momentum and buying pressure. Neither of those things seems to be a problem with today’s announcement or trading. You can view CAT’s full stock report through my free Portfolio Grader ratings system.

Bottom Line

I currently rank CAT as a B or buy and expect that I may have to upgrade it to a strong buy in the coming weeks.

Recommendation: Buy