CMI

Eaton (ETN) trades near $390 a share, about 39.7 times the adjusted earnings it made over the past twelve months. That basis is normalized net income with stock-based compensation added back, meant to sit closer to the analyst-consensus basis than a GAAP figure would, though the two adjusted measures are not defined identically. On that figure alone the stock looks dear.

Caterpillar's heavy‑equipment business is performing strongly, yet a recent price dip has prompted investors to consider buying. The pullback may be a buying opportunity, but the company remains solid.

Cummins shares fell 15.3% after its earnings report. Analysts are looking at earnings estimates to gauge the next move.

In the second quarter of 2026, Caterpillar's retail sales to users in power generation surged 72% year-over-year, a pace that looks more like a high-growth tech supplier than a traditional industrial giant. This growth is not from traditional sources but from the immense energy needs of new data centers.

Caterpillar's Power & Energy segment is growing fast, driven by demand from data centers and AI infrastructure. The segment's future sustainability is under scrutiny.

The article questions whether it is time to sell industrial stocks.