Caterpillar has performed badly in the past, but what does the future hold? In this video, Brendan Byrnes lays out his case for investing in the company. Most compelling, he says, is that Caterpillar has entered the mining equipment business, which should mesh well with the growing demand for coal in China. The company also generates more than 60% of its revenues outside the U.S., so as emerging markets grow, Caterpillar's revenues should get a boost. Best of all, the company is trading at less than 10 times earnings, putting it at a fair entry price.

Check out the video for more details.

Caterpillar is the market share leader in an industry in which size matters, and its quality products, extensive service network, and unparalleled brand strength combine to give it solid competitive advantages. Read all about Caterpillar's strengths and weaknesses in The Motley Fool's brand-new report. Just click here to access it now.


The article Why This Year's Worst Dow Stock Is a Buy originally appeared on Fool.com.

Austin Smith and The Motley Fool own shares of General Electric. Brendan Byrnes owns shares of Caterpillar. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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