Cummins (CMI) Exceeds Market Returns: Some Facts to Consider
Cummins (CMI) closed at $294.69 in the latest trading session, marking a +0.98% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.86%. At the same time, the Dow added 1.22%, and the tech-heavy Nasdaq gained 0.51%.
Heading into today, shares of the engine maker had gained 8.67% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 0.17% and the S&P 500's gain of 2.84% in that time.
The investment community will be closely monitoring the performance of Cummins in its forthcoming earnings report. On that day, Cummins is projected to report earnings of $5.10 per share, which would represent a year-over-year decline of 8.11%. At the same time, our most recent consensus estimate is projecting a revenue of $8.36 billion, reflecting a 1.12% fall from the equivalent quarter last year.
CMI's full-year Zacks Consensus Estimates are calling for earnings of $18.36 per share and revenue of $32.89 billion. These results would represent year-over-year changes of -6.75% and -3.44%, respectively.
Investors should also note any recent changes to analyst estimates for Cummins. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.91% lower. As of now, Cummins holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Cummins is holding a Forward P/E ratio of 15.89. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 15.89.
Also, we should mention that CMI has a PEG ratio of 1.98. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. CMI's industry had an average PEG ratio of 1.98 as of yesterday's close.
The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Cummins Inc. (CMI) : Free Stock Analysis Report
