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Both WMT and CAT have crushed the S&P 500 over the last decade.
Both have also seen new growth avenues open up recently, keeping the long-term outlook bullish.
When stocks are cruising near all-time or 52-week highs, it reflects considerable bullishness with trends where buyers are in control. Stocks making new highs tend to make even higher highs, particularly when analysts' positive earnings estimate revisions are present.
That’s been precisely the case for Caterpillar (CAT - Free Report) and Walmart (WMT - Free Report) , both of which have seen new growth runways open up and are trading near 52-week/all-time highs. Let’s take a closer look at what’s been driving the bullish behavior.
Walmart Earnings Impress
Walmart shares have benefited nicely from recent quarterly results, with its digital business regularly showing strong growth and enabling it to pursue additional growth avenues through advertising.
In addition to the digital efforts, Walmart also sits in a pretty spot concerning its consumer base, with higher-income households able to trade down in periods of distress, while lower and middle-income households find its lower-priced products attractive nearly year-round.
Up more than 40% over the last year, the stock has been a rockstar performer, outperforming the S&P 500 by a wide margin. The stock has also become a solid dividend play over recent years, with the payout increasing by a fair amount over the period. WMT has increased its dividend payout five times over as many years, translating to a 5.5% five-year annualized dividend growth rate.
One-Year Share Performance & Dividend Growth
Image Source: Zacks Investment Research
Caterpillar Benefits From AI Buildout
Caterpillar posted robust results in its latest release, continuing a streak of impressive investors over the past year or so. Sales of $18 billion marked a quarterly record, and the company also exited the period with a record-high backlog.
Notably, the company has benefited from the broader AI buildout as well. Its Power & Energy segment YoY sales growth rate of 23% in the above-mentioned quarter was partly driven by higher demand for large reciprocating engines, primarily for data center applications.
The strong top line performance is better seen below in the chart that illustrates Caterpillar’s sales on a quarterly basis. The company’s current fiscal year outlook has also shifted bullishly since roughly the beginning of October 2025, also shown below.
Quarterly Revenue Growth & Current Fiscal Year EPS Revisions
Image Source: Zacks Investment Research
Keep in mind that the company is also a Dividend Aristocrat, a title given to S&P 500 companies with at least 25 consecutive years of higher, uninterrupted dividend payouts. Specifically, the company has 30+ years of uninterrupted, higher payouts under its belt.
Bottom Line
Stocks near 52-week highs reflect considerable bullish momentum, with stocks that make new highs tending to make even higher highs on the back of bullish sentiment that got them there to begin with.
Both Walmart (WMT - Free Report) and Caterpillar (CAT - Free Report) have been excellent long-term holdings, crushing the S&P 500 over the last decade. The momentum looks set to continue thanks to the favorable growth avenues that have opened up for each in the technology era.
Image Source: Zacks Investment Research
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2 Long Term Favorite Stocks Trading Near 52-Week Highs
Key Takeaways
When stocks are cruising near all-time or 52-week highs, it reflects considerable bullishness with trends where buyers are in control. Stocks making new highs tend to make even higher highs, particularly when analysts' positive earnings estimate revisions are present.
That’s been precisely the case for Caterpillar (CAT - Free Report) and Walmart (WMT - Free Report) , both of which have seen new growth runways open up and are trading near 52-week/all-time highs. Let’s take a closer look at what’s been driving the bullish behavior.
Walmart Earnings Impress
Walmart shares have benefited nicely from recent quarterly results, with its digital business regularly showing strong growth and enabling it to pursue additional growth avenues through advertising.
In addition to the digital efforts, Walmart also sits in a pretty spot concerning its consumer base, with higher-income households able to trade down in periods of distress, while lower and middle-income households find its lower-priced products attractive nearly year-round.
Up more than 40% over the last year, the stock has been a rockstar performer, outperforming the S&P 500 by a wide margin. The stock has also become a solid dividend play over recent years, with the payout increasing by a fair amount over the period. WMT has increased its dividend payout five times over as many years, translating to a 5.5% five-year annualized dividend growth rate.
One-Year Share Performance & Dividend Growth
Image Source: Zacks Investment Research
Caterpillar Benefits From AI Buildout
Caterpillar posted robust results in its latest release, continuing a streak of impressive investors over the past year or so. Sales of $18 billion marked a quarterly record, and the company also exited the period with a record-high backlog.
Notably, the company has benefited from the broader AI buildout as well. Its Power & Energy segment YoY sales growth rate of 23% in the above-mentioned quarter was partly driven by higher demand for large reciprocating engines, primarily for data center applications.
The strong top line performance is better seen below in the chart that illustrates Caterpillar’s sales on a quarterly basis. The company’s current fiscal year outlook has also shifted bullishly since roughly the beginning of October 2025, also shown below.
Quarterly Revenue Growth & Current Fiscal Year EPS Revisions
Image Source: Zacks Investment Research
Keep in mind that the company is also a Dividend Aristocrat, a title given to S&P 500 companies with at least 25 consecutive years of higher, uninterrupted dividend payouts. Specifically, the company has 30+ years of uninterrupted, higher payouts under its belt.
Bottom Line
Stocks near 52-week highs reflect considerable bullish momentum, with stocks that make new highs tending to make even higher highs on the back of bullish sentiment that got them there to begin with.
Both Walmart (WMT - Free Report) and Caterpillar (CAT - Free Report) have been excellent long-term holdings, crushing the S&P 500 over the last decade. The momentum looks set to continue thanks to the favorable growth avenues that have opened up for each in the technology era.
Image Source: Zacks Investment Research