Industrial giant Caterpillar (CAT Quick QuoteCAT - Free Report) is set to report third-quarter earnings results on Tuesday before the opening bell. The largest construction and mining equipment manufacturer in the world, Caterpillar has exceeded the earnings mark in three of the last four quarters. But with the manufacturing sector struggling as of late, is CAT a buy?

Caterpillar is expected to deliver a third-quarter profit of $4.75/share, which would reflect growth of 20.25% versus the same quarter last year. Earnings estimates for the quarter have risen 2.37% in the past 60 days. Revenues are projected to have risen 10.45% to $16.56 billion.

A Zacks Rank #2 (Buy) stock, CAT has posted a trailing four-quarter average earnings surprise of 18.54%. Yet even with the favorable statistic, our Zacks proprietary methodology does not conclusively predict a Q3 earnings beat. CAT shares have underperformed the market this year with just a 2% year-to-date return. Investors should proceed with caution heading into the announcement.