George Frey | Bloomberg | Getty Images Investors should buy Caterpillar because the company will report earnings this year significantly above Wall Street expectations, according to Goldman Sachs, which reiterated its buy rating on the equipment manufacturer and added the company to its Americas conviction buy list."Construction machinery demand is in the early stages of recovery, with significant scope for inventory restock," analyst Jerry Revich wrote in a note to clients Tuesday. "A modest construction recovery in key regions, compounded by normalization in machinery share of capex should drive strong demand growth off of historically low levels."
The yearly sales of construction and mining machinery manufacturer Caterpillar are expected to significantly exceed Wall Street predictions , according to Goldman Sachs . The investment bank has therefore reiterated its credit rating on Caterpillar shares and added the company to its stock conviction buy list . The construction machinery market is in the early stages of recovery and offers increased opportunities for inventory restock as the industry 's capital expenditure on machinery returns to normal , according to Goldman Sachs analyst Jerry Revich .