Cummins (CMI) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Cummins (CMI) closed at $234.67, marking a -0.28% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.46%. Elsewhere, the Dow gained 0.48%, while the tech-heavy Nasdaq added 0.7%.
Shares of the engine maker have appreciated by 8.23% over the course of the past month, underperforming the Auto-Tires-Trucks sector's gain of 8.55% and outperforming the S&P 500's gain of 4.85%.
Investors will be eagerly watching for the performance of Cummins in its upcoming earnings disclosure. On that day, Cummins is projected to report earnings of $4.40 per share, which would represent a year-over-year decline of 2.65%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.07 billion, up 3.89% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $19.68 per share and revenue of $33.59 billion, which would represent changes of +30.16% and +19.66%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Cummins. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.07% higher. Cummins presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Cummins is presently trading at a Forward P/E ratio of 11.96. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 11.96.
Meanwhile, CMI's PEG ratio is currently 1.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Automotive - Internal Combustion Engines was holding an average PEG ratio of 1.25 at yesterday's closing price.
The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Cummins Inc. (CMI) : Free Stock Analysis Report
