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Cummins (CMI) Gains But Lags Market: What You Should Know
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In the latest trading session, Cummins (CMI - Free Report) closed at $256.49, marking a +0.08% move from the previous day. This move lagged the S&P 500's daily gain of 0.14%. At the same time, the Dow lost 0.18%, and the tech-heavy Nasdaq gained 1.54%.
Coming into today, shares of the engine maker had gained 1.84% in the past month. In that same time, the Auto-Tires-Trucks sector lost 3.69%, while the S&P 500 lost 4.07%.
Investors will be hoping for strength from Cummins as it approaches its next earnings release. In that report, analysts expect Cummins to post earnings of $4.70 per share. This would mark year-over-year growth of 16.34%. Our most recent consensus estimate is calling for quarterly revenue of $8 billion, up 25.27% from the year-ago period.
CMI's full-year Zacks Consensus Estimates are calling for earnings of $18.95 per share and revenue of $32.06 billion. These results would represent year-over-year changes of +25.33% and +14.19%, respectively.
Investors might also notice recent changes to analyst estimates for Cummins. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 5.68% lower. Cummins currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, Cummins is holding a Forward P/E ratio of 13.52. Its industry sports an average Forward P/E of 12.15, so we one might conclude that Cummins is trading at a premium comparatively.
It is also worth noting that CMI currently has a PEG ratio of 1.49. 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. The Automotive - Internal Combustion Engines industry currently had an average PEG ratio of 1.49 as of yesterday's close.
The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 223, putting it in the bottom 12% 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.
To follow CMI in the coming trading sessions, be sure to utilize Zacks.com.
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Cummins (CMI) Gains But Lags Market: What You Should Know
In the latest trading session, Cummins (CMI - Free Report) closed at $256.49, marking a +0.08% move from the previous day. This move lagged the S&P 500's daily gain of 0.14%. At the same time, the Dow lost 0.18%, and the tech-heavy Nasdaq gained 1.54%.
Coming into today, shares of the engine maker had gained 1.84% in the past month. In that same time, the Auto-Tires-Trucks sector lost 3.69%, while the S&P 500 lost 4.07%.
Investors will be hoping for strength from Cummins as it approaches its next earnings release. In that report, analysts expect Cummins to post earnings of $4.70 per share. This would mark year-over-year growth of 16.34%. Our most recent consensus estimate is calling for quarterly revenue of $8 billion, up 25.27% from the year-ago period.
CMI's full-year Zacks Consensus Estimates are calling for earnings of $18.95 per share and revenue of $32.06 billion. These results would represent year-over-year changes of +25.33% and +14.19%, respectively.
Investors might also notice recent changes to analyst estimates for Cummins. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 5.68% lower. Cummins currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, Cummins is holding a Forward P/E ratio of 13.52. Its industry sports an average Forward P/E of 12.15, so we one might conclude that Cummins is trading at a premium comparatively.
It is also worth noting that CMI currently has a PEG ratio of 1.49. 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. The Automotive - Internal Combustion Engines industry currently had an average PEG ratio of 1.49 as of yesterday's close.
The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 223, putting it in the bottom 12% 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.
To follow CMI in the coming trading sessions, be sure to utilize Zacks.com.