Caterpillar Stock: A Bargain or Dead “CAT” Bounce?

$Caterpillar (CAT.US)$ Shares of industrial equipment kingpin Caterpillar (CAT) has seen its relief rally stagnate in recent weeks, with the growth trade now overtaking value in this sudden ricochet off the market bottom.

Although it's tempting to reach for risk again, I think the cooling-off of value plays like Caterpillar may offer a better entry point for those who doubt the sustainability of the recent relief rally. In any case, CAT stock seems like it could hold more of its value if the current rally proves nothing more than a dead cat bounce.

Indeed, not much has changed at the macro level over the past three weeks. Arguably, all that's changed is the share price and the inversion of the yield curve.