The "Fast Money" traders debated whether to jump on the dip in Caterpillar shares after the company posted mixed quarterly results on Tuesday.

Trader Guy Adami said the equipment manufacturer has a history of "negative commentary post-earnings." Adami said the main reason why Caterpillar shares have rallied this year is because investors are attracted to the stock's dividend. He also said the stock feels expensive at its current valuation.

As of their Tuesday close, Caterpillar shares had a price-to-earnings ratio was 49.1 on a trailing 12-month basis, according to FactSet.

Trader Pete Najarian agreed and said investors who currently hold the stock should consider taking profits off the table. He said that investors who want to buy the stock should wait for a "significant pullback."

Caterpillar's issues are pretty specific and don't necessarily apply to other companies in the equipment space, said trader Karen Finerman. She said she still likes United Rentals.

Disclosures:

PETE NAJARIAN

Long stock: AAPL, BAC, DIS, DISCA, GE, KMI, KMI.A, KO, LUX, MRK, p, PEP, PFE, calls: ABT, AMD, ATVI, BABA, BAC, BBY, CNX, COP, CS, DISH, ECA, ETP, GM, GRPN, GS, INTC, JBLU, JCP, KGC, LLY, LOW, M, MOS, MRO, MRVL, MT, MUR, NAV, NBR, PBR, RIO, SBUX, TTS, TV, TWTR, VRX, WFT, WLL, X, XLF and puts: TWTR.

KAREN FINERMAN

Karen Finerman is long AAL, BAC, C, DAL, long DB calls, FB, FL, GOGO, GOOG, GOOGL, JPM, LYV, KORS, KORS calls, KORS puts, M, MA, SEDG, SPY puts, UAL, URI, WIFI long call spreads. Her firm is long ANTM, AAPL, BAC, C, C calls, FB, GOOG, GOOGL, JPM, JPM calls, KORS, LYV, M, MOH, PLCE, SPY puts, URI, WIFI. Her firm is short IWM, MDY. Finerman is on the board of GrafTech International.

DAN NATHAN

Dan Nathan is TWTR long, XHB long Jan put spread, XLU long Dec call Spread, XLK long Jan put spread, XRT long Jan put spread, PG long Dec put spread, EEM long Nov put spread

GUY ADAMI

Guy Adami is long CELG, EXAS, GDX, INTC. Adami's wife, Linda Snow, works at Merck.