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Cummins (CMI) Stock Moves -0.14%: What You Should Know
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Cummins (CMI - Free Report) closed the most recent trading day at $218.29, moving -0.14% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.87%. At the same time, the Dow lost 0.08%, and the tech-heavy Nasdaq lost 0.34%.
Coming into today, shares of the engine maker had lost 5.73% in the past month. In that same time, the Auto-Tires-Trucks sector lost 5.33%, while the S&P 500 gained 0.7%.
Investors will be hoping for strength from Cummins as it approaches its next earnings release. The company is expected to report EPS of $3.14, down 6.55% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.8 billion, down 0.47% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.30 per share and revenue of $23.98 billion. These totals would mark changes of +27.39% and +21.06%, respectively, from last year.
Any recent changes to analyst estimates for Cummins should also be noted by investors. Recent revisions tend to reflect the latest 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. Within the past 30 days, our consensus EPS projection has moved 0.01% lower. Cummins is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Cummins currently has a Forward P/E ratio of 14.28. Its industry sports an average Forward P/E of 12.76, so we one might conclude that Cummins is trading at a premium comparatively.
Also, we should mention that CMI has a PEG ratio of 1.28. 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 1.28 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 237, which puts it in the bottom 7% 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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Cummins (CMI) Stock Moves -0.14%: What You Should Know
Cummins (CMI - Free Report) closed the most recent trading day at $218.29, moving -0.14% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.87%. At the same time, the Dow lost 0.08%, and the tech-heavy Nasdaq lost 0.34%.
Coming into today, shares of the engine maker had lost 5.73% in the past month. In that same time, the Auto-Tires-Trucks sector lost 5.33%, while the S&P 500 gained 0.7%.
Investors will be hoping for strength from Cummins as it approaches its next earnings release. The company is expected to report EPS of $3.14, down 6.55% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.8 billion, down 0.47% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.30 per share and revenue of $23.98 billion. These totals would mark changes of +27.39% and +21.06%, respectively, from last year.
Any recent changes to analyst estimates for Cummins should also be noted by investors. Recent revisions tend to reflect the latest 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. Within the past 30 days, our consensus EPS projection has moved 0.01% lower. Cummins is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Cummins currently has a Forward P/E ratio of 14.28. Its industry sports an average Forward P/E of 12.76, so we one might conclude that Cummins is trading at a premium comparatively.
Also, we should mention that CMI has a PEG ratio of 1.28. 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 1.28 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 237, which puts it in the bottom 7% 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.