Despite reporting strong earnings in July, Caterpillar's stock has fallen recently, in part because rising material costs are likely to weigh on profit margins for the rest of 2021. Heavy equipment maker Caterpillar (NYSE: CAT), retail pharmacy giant Walgreens Boots Alliance (NASDAQ: WBA), and home improvement giant Home Depot (NYSE: HD) shares are leading the way, up 3.4%, 2.5% and 2%, respectively, at this writing. Caterpillar is viewed as one of the biggest beneficiaries of the fast-recovering economy, and the slowing rate of inflation is seen as good news for the company.