“The big question mark is the politics,” Oberhelman said. “The politics in Europe, the politics here. That’s the cloud that’s got all of us very worried and concerned, but having said that we think we’re going to get through all that and in the end we see pretty good things coming through the rest of the year and onto 2013 and beyond."
Both Oberhelman and Duigan based their forecasts on the long-term outlook of the global economy.
“Caterpillar is much more leveraged to what is going on globally now that they are considered a mining play,” Duigan said, adding that the stock will continue to be impacted not only by what’s going on in the U.S., but also in China, Brazil and Europe.
As long as global gross domestic product remains positive, Duigan said, the world will consume more hard commodities and boost the stock. “We think that unless the world goes into a global recession, then demand for hard commodities will continue to rise,” she said.
Although second-quarter earnings beat expectations, Caterpillar executives warned that third-quarter sales tend to be lower as a result of summer production slowdowns.
—By CNBC.com’s Madeline Laskoski
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JPMorgan has provided investment banking and non-investment banking services and acted as a manager in public offering of securities of CAT within the past 12 months.