Here's How Caterpillar Is Shaping Up in 2022

As of this writing, Caterpillar's (NYSE: CAT) stock price is down nearly 16% in 2022, and it's been an up-and-down ride. The stock's movements are reflective of the marketplace's ongoing bull-vs.-bear trends this year. Here's a look at what's going on, what investors can expect from Caterpillar this year, and why the stock reflects current investing conditions.

Caterpillar's roller-coaster 2022 was marked by a double-digit gain in the spring, followed by a sharp reversal since early June. The reason: inflation and recession.

It's no secret that commodity and raw material costs soared in late 2021 and early 2022 on the back of solid demand from an economy that was recovering from supply constraints related to COVID-19 lockdowns. A robust commodity price environment is a net positive for Caterpillar, which is a major player in the mining machinery market and in oil and gas equipment. In addition, its construction equipment is used in activities related to commodity spending, such as the construction of pipelines and buildings.

Source Fool.com