Caterpillar Inc. (NYSE:CAT) shares moved up $1.50, or 2.27%, to $67.66 today after the company announced a $7.5 billion share buyback over the next five years. The company also disclosed a joint venture move to increase their presence in the Asian markets. The move clearly indicates the company's confidence in its future cash flows and earnings growth over the next few years. Moreover, the fact that they completed their previous program more than a year and a half ahead of schedule is definitely a positive indicator. Even after the $1.5 billion per year buyback program, the company should still generate approximately $1.75 billion in spare cash per year with a healthy pension fund. While the company's shares have stalled for almost a year, the buyback and expansion into Asian markets may be enough to propel the stock out of its range to the upside. Combined, these factors make Caterpillar a stock definitely worth watching!

Related Companies
Terex Corporation (TEX)
Deere & Company (DE)
Cummins, Inc. (CMI)