After beating the market in 2020, Caterpillar‘s (NYSE: CAT) stock is off to another great start this year. Shares surged over 5% on Jan 6. then passed $200 a share intraday on Wednesday, marking a new all-time high.
Last week’s surge came in response to news from the Georgia runoff elections that the Democratic Party has flipped the Senate and now controls Congress and the Executive Branch. This control should make it easier for President-elect Joe Biden to execute his “Build Back Better” plan, which is “a national effort aimed at creating the jobs we need to build a modern, sustainable infrastructure now and deliver an equitable clean energy future.” The plan would involve massive government stimulus and the creation of millions of jobs. Biden won Caterpillar’s home state of Illinois and other Midwest states like Wisconsin, Minnesota, and Michigan — and wants to make good on his promises for job creation. Here’s why the plan is just one of many tailwinds that could propel Caterpillar’s stock even higher.