Industrial manufacturer Caterpillar has enjoyed a nearly 23% run so far this year – and one analyst is calling for 20% more.

Deutsche Bank's Nicole DeBlase initiated coverage of the industrial machinery space - naming Caterpillar as her top pick, with a "Buy" rating. DeBlase applauded management's commitment to reducing costs and says Caterpillar earnings are nearing a bottom as commodity prices appear to stabilize.

Now the most bullish analyst on Wall Street, DeBlase believes that investors will begin to favor industrial manufacturers that can "pull internal levers" to grow earnings.

The Halftime Report's experts tackled the Caterpillar trade and the rest of the industrial space.

Jon Najarian believes that there are commodity-linked headwinds ahead for Caterpillar that could slow the stock's double-digit year, namely: Saudi Arabia.

"They [Saudi Arabia] haven't had enough money coming in from the oil side… they're talking about cutbacks up to $20 billion on infrastructure and so forth" Jon Najarian said. "I think that is a potential that holds Caterpillar back rather than a catalyst that drives them forward."

Josh Brown noted some technical resistance for Caterpillar after the stock's recent run.

"I think $85 is a tough nut to crack that's real resistance… right now it just looks like yet another rally that gets to that level and falls apart," Brown said.

Pete Najarian questioned Deutsche Bank's call on (CAT) and gave his own top pick in the industrial space: General Electric. "They've exited themselves as much as they can out of the financial world; I think there's a lot of different things they're able to do with their books to move themselves forward," Pete Najarian said.

Joe Terranova took the opposite side of the trade – agreeing that there could be more upside ahead for Caterpillar due to the changing political landscape. "One of the reasons you're going to see upside in all these material names has to do with infrastructure spending here domestically," Terranova said.

"Whoever wins the White House they're going to have to stimulate the economy, rebuild the bridges, rebuild the roads, and that benefits a lot of these materials."