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Cummins (CMI) Outpaces Stock Market Gains: What You Should Know
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Cummins (CMI - Free Report) closed at $252.65 in the latest trading session, marking a +1.02% move from the prior day. This move outpaced the S&P 500's daily gain of 0.4%. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 1.1%.
Prior to today's trading, shares of the engine maker had gained 6.01% over the past month. This has outpaced the Auto-Tires-Trucks sector's loss of 10.31% and the S&P 500's loss of 0.01% in that time.
Cummins will be looking to display strength as it nears its next earnings release, which is expected to be February 6, 2023. The company is expected to report EPS of $4.95, up 73.68% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.34 billion, up 25.41% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Cummins. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.72% lower. Cummins is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Cummins currently has a Forward P/E ratio of 12.04. Its industry sports an average Forward P/E of 12.32, so we one might conclude that Cummins is trading at a discount comparatively.
Also, we should mention that CMI has a PEG ratio of 1.32. 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 1.32 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 15, which puts it in the top 6% 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.
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 (CMI) Outpaces Stock Market Gains: What You Should Know
Cummins (CMI - Free Report) closed at $252.65 in the latest trading session, marking a +1.02% move from the prior day. This move outpaced the S&P 500's daily gain of 0.4%. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 1.1%.
Prior to today's trading, shares of the engine maker had gained 6.01% over the past month. This has outpaced the Auto-Tires-Trucks sector's loss of 10.31% and the S&P 500's loss of 0.01% in that time.
Cummins will be looking to display strength as it nears its next earnings release, which is expected to be February 6, 2023. The company is expected to report EPS of $4.95, up 73.68% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.34 billion, up 25.41% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Cummins. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.72% lower. Cummins is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Cummins currently has a Forward P/E ratio of 12.04. Its industry sports an average Forward P/E of 12.32, so we one might conclude that Cummins is trading at a discount comparatively.
Also, we should mention that CMI has a PEG ratio of 1.32. 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 1.32 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 15, which puts it in the top 6% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.