Caterpillar (NYSE:CAT) has fallen out of favor with the market: The stock has given up a quarter of its value over the past year, and is down nearly 16% year to date.

CAT Chart

CAT data by YCharts.

Risk-averse investors are still wary of the challenges that the heavy-machinery manufacturer faces in each of its three business -- resource industries (or mining equipment), construction industries, and energy and transportation. On the other hand, value investors are hoping to see the stock bottom out, giving them an opportunity to place a long-term bet.

So is this the right time to buy Caterpillar stock? The slideshow below will give you my answer. Take a look.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.