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Cummins (CMI) to Lead Current and Future Technologies

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In a recent teleconference, management of Cummins Inc. (CMI - Free Report) discussed its strengths. Per management, the Columbus, IN-based global power leader is comparatively better-placed than its peers in terms of adoption of current and future technologies. These pertain to its core business, electrification, alternative fuels and power solutions and digital capabilities, data and analytics.

Management believes that the company is well positioned to provide wide-ranging technologies, catering to its varied customers, starting from diesel and natural gas to fully-electric and hybrid powertrains.

Cummins is a top global designer, manufacturer and distributor of diesel and natural gas engines, electric power generation systems, and engine-related components, fuel systems, controls and air handling systems. The company is continuously emphasizing its core business areas of engine, power systems, components and distribution. A pool of experts, spread across the globe, is aiding the company to keep its focus intact on its core business.

Recently, Cummins upsized its efforts to commercialize the electrification capabilities. The aim is to combine its experience and knowledge in the powertrain space. Also, the company is mulling over the possibility of partnerships to develop leading technology in areas such as energy storage, power electronics, traction motor systems and component control for commercial purposes.

The zero emissions natural gas engine systems of Cummins are perfectly suited to urban areas. Related to digital capabilities, data & analytics, Cummins has formed a new internal organization for streamlining innovation and efficiently channelizing concepts into commercial outlets.

Cummins outperformed the Zacks categorized Auto-Tires-Trucks market in the last three months. The company’s share price increased 4.6% over this period while the industry saw a 0.4% decline.



Currently, Cummins sports a Zacks Rank #1 (Strong Buy).

Better-ranked stocks in the auto space include Allison Transmission Holdings Inc. (ALSN - Free Report) , Dana Incorporated (DAN - Free Report) and Ferrari N.V. (RACE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see  the complete list of today’s Zacks #1 Rank stocks here.

Expected long-term growth rate for Allison Transmission, Dana and Ferrari are 11%, 3% and 14.1%, respectively.

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