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Cummins (CMI) closed the most recent trading day at $233.32, moving +0.15% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.77%.
Prior to today's trading, shares of the engine maker had lost 2.57% over the past month. This has lagged the Auto-Tires-Trucks sector's loss of 0.81% and the S&P 500's gain of 1.55% in that time.
Investors will be hoping for strength from CMI as it approaches its next earnings release. In that report, analysts expect CMI to post earnings of $4.23 per share. This would mark year-over-year growth of 18.49%. Our most recent consensus estimate is calling for quarterly revenue of $6.09 billion, up 19.04% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.37 per share and revenue of $24.65 billion. These totals would mark changes of +36.3% and +24.41%, respectively, from last year.
Any recent changes to analyst estimates for CMI should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 remained stagnant. CMI is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, CMI is currently trading at a Forward P/E ratio of 14.24. This valuation marks a premium compared to its industry's average Forward P/E of 13.59.
It is also worth noting that CMI currently has a PEG ratio of 1.27. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. CMI's industry had an average PEG ratio of 1.27 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 247, which puts it in the bottom 3% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Cummins Inc. (CMI) : Free Stock Analysis Report
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