Cummins (CMI) Gains But Lags Market: What You Should Know
Cummins (CMI) closed at $239.38 in the latest trading session, marking a +0.61% move from the prior day. The stock lagged the S&P 500's daily gain of 0.82%.
Coming into today, shares of the engine maker had gained 0.39% in the past month. In that same time, the Auto-Tires-Trucks sector lost 0.71%, while the S&P 500 gained 3.89%.
CMI will be looking to display strength as it nears its next earnings release, which is expected to be August 3, 2021. The company is expected to report EPS of $4.06, up 108.21% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.11 billion, up 58.55% from the prior-year quarter.
CMI's full-year Zacks Consensus Estimates are calling for earnings of $16.21 per share and revenue of $24.5 billion. These results would represent year-over-year changes of +34.97% and +23.68%, respectively.
Investors should also note any recent changes to analyst estimates for CMI. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.2% higher. CMI currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that CMI has a Forward P/E ratio of 14.68 right now. This valuation marks a premium compared to its industry's average Forward P/E of 12.97.
Investors should also note that CMI has a PEG ratio of 1.31 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Internal Combustion Engines industry currently had an average PEG ratio of 1.31 as of yesterday's close.
The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 252, which puts it in the bottom 1% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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