What ever you do, do not listen to richoncat. He will be broke soon and as he goes there, he will pump his loser all the way to the bottom, then sell. CAT is heading down, way down. Read all of tooth's posts for real information.
My guess is international instability always casts a shadow on international companies that rely on worldwide growth for success. Cat is not immune to those pressures. Unrest in Egypt and austerity issues in Portugal are fanning the flames of fear. This too shall play out. Cat has showed good support at $85 for the past year. It seems to be testing that recently with dips to just below $80. If you're investing long term money, I'd buy these dips and be patient. Growth will certainly return. In fact it looks like the US is now in position to lead the world out of the recent funk as it's done countless times in history. At 8% unemployment and a nearly dead housing market we weren't in any position to lead. Now economic conditions in the US are improving and with no evidence of inflation the Fed will be able to maintain its easy money stance for some time to come. Sit back and watch the US lead the world again into a sustainable growth environment.
With a forward P/E of 10 and decent cash flow I'd tend to agree. I don't see "sustainable economic growth" from the US however. We are still mired in our own internal conflicts as a nation, visible to the world. Our built in economic fear factor restrains our businesses from investing and America from leading, etc. Obamacare delay will just drag this fear factor out longer imo. $80 is a reasonable price to accumulate for dividends but I'm neutral on growth until into 2014 and election posturing becomes more clear.