The

Dow Jones Industrial Average

(

^DJI

) is trading up 158 points (+1.2%) at 12,834 as of Thursday, Jul 26, 2012, 11:35 a.m. ET. During this time, 256.4 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 687.1 million. The NYSE advances/declines ratio sits at 2,112 issues advancing vs. 806 declining with 108 unchanged.

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The Dow component leading the way higher looks to be

Caterpillar

(NYSE:

CAT

), which is sporting a five-cent gain to $82.65. This single gain is lifting the Dow Jones Industrial Average by 0.38 points or roughly accounting for 0.2% of the Dow's overall gain. Volume for Caterpillar currently sits at 4.9 million shares traded vs. an average daily trading volume of 7.2 million shares.

Caterpillar has a market cap of $53.13 billion and is part of the

conglomerates

sector and

conglomerates

industry. Shares are down 10.1% year to date as of Wednesday's close. The stock's dividend yield sits at 2.6%.

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. The company has a P/E ratio of 10.3, equal to the average conglomerates industry P/E ratio and below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Caterpillar as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company has had generally poor debt management on most measures that we evaluated.

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