Can CAT Break $80? (CAT)

Caterpillar

has been the Dow (

) leader in 2010. Shares of the company, which makes off-highway trucks and underground excavators, are up more than 40 percent this year. Caterpillar has benefitted from robust sales growth in China and a weaker dollar, which makes its exports more competitive. The stock is trading right at a 52-week high of $79, having risen 22.9% in the last month. Bulls see continued upside from this cyclical play and a run to its all-time high of $87, reached at the market's peak in 2007. However, bears see this move as a blowoff top and given that the stock trades at 32 times earnings, there may be limited upside left in CAT. It will be interesting to see who wins this epic bull/bear battle.