Why Cummins (CMI) Outpaced the Stock Market Today
In the latest trading session, Cummins (CMI) closed at $242.97, marking a +1.53% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 1.25% for the day. Meanwhile, the Dow experienced a rise of 0.97%, and the technology-dominated Nasdaq saw an increase of 1.3%.
Shares of the engine maker witnessed a gain of 0.66% over the previous month, beating the performance of the Auto-Tires-Trucks sector with its loss of 11.14% and underperforming the S&P 500's gain of 1.58%.
The investment community will be paying close attention to the earnings performance of Cummins in its upcoming release. The company is slated to reveal its earnings on February 6, 2024. It is anticipated that the company will report an EPS of $4.41, marking a 2.43% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $8.08 billion, indicating a 3.93% growth compared to the corresponding quarter of the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Cummins. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.35% lower. At present, Cummins boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Cummins is presently trading at a Forward P/E ratio of 12.45. This valuation marks no noticeable deviation compared to its industry's average Forward P/E of 12.45.
Meanwhile, CMI's PEG ratio is currently 1.29. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Automotive - Internal Combustion Engines industry had an average PEG ratio of 1.29 as trading concluded yesterday.
The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 110, putting it in the top 44% 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.
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
