Caterpillar finished 2017 as the second-best performing Dow stock, with a gain of 70%. But so far 2018 has been a different story. Investors have shied away from the stock due to escalating trade war tensions as well as fears over the impact that steel tariffs will have on Caterpillar's bottom line.
On Monday the company reported second quarter results that topped analyst estimates -- including a 24% growth in sales and revenue -- and also raised full-year guidance. But despite the blowout quarter, the stock still finished the day in the red.
Stephanie Link, Nuveen managing director and head of global equities research, owns Caterpillar. She believes the company's fundamentals are intact, and that it's unfairly getting hit by trade war rhetoric.
"They just grew revenue, up 24%, margins expanded 500 basis points, it's down 19% from its high, down 8% on the year, trades at twelve times forward. That's all you need to know," she said on Tuesday's "Halftime Report."