In the latest trading session, Cummins (CMI - Free Report) closed at $226.73, marking a +1.74% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.38%. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, lost 4.19%.
Prior to today's trading, shares of the engine maker had gained 0.82% over the past month. This has lagged the Auto-Tires-Trucks sector's gain of 14.75% and the S&P 500's gain of 3.78% in that time.
Wall Street will be looking for positivity from Cummins as it approaches its next earnings report date. The company is expected to report EPS of $5.16, up 8.18% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.24 billion, up 25.11% from the year-ago period.
CMI's full-year Zacks Consensus Estimates are calling for earnings of $19.79 per share and revenue of $32.81 billion. These results would represent year-over-year changes of +30.89% and +16.87%, respectively.
Investors should also note any recent changes to analyst estimates for Cummins. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.76% higher. Cummins currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Cummins has a Forward P/E ratio of 11.26 right now. This represents a premium compared to its industry's average Forward P/E of 11.16.
Also, we should mention that CMI has a PEG ratio of 1.24. 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 1.24 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 220, putting it in the bottom 13% 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.
To follow CMI in the coming trading sessions, be sure to utilize Zacks.com.
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In the latest trading session, Cummins (CMI - Free Report) closed at $226.73, marking a +1.74% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.38%. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, lost 4.19%.
Prior to today's trading, shares of the engine maker had gained 0.82% over the past month. This has lagged the Auto-Tires-Trucks sector's gain of 14.75% and the S&P 500's gain of 3.78% in that time.
Wall Street will be looking for positivity from Cummins as it approaches its next earnings report date. The company is expected to report EPS of $5.16, up 8.18% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.24 billion, up 25.11% from the year-ago period.
CMI's full-year Zacks Consensus Estimates are calling for earnings of $19.79 per share and revenue of $32.81 billion. These results would represent year-over-year changes of +30.89% and +16.87%, respectively.
Investors should also note any recent changes to analyst estimates for Cummins. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.76% higher. Cummins currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Cummins has a Forward P/E ratio of 11.26 right now. This represents a premium compared to its industry's average Forward P/E of 11.16.
Also, we should mention that CMI has a PEG ratio of 1.24. 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 1.24 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 220, putting it in the bottom 13% 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.
To follow CMI in the coming trading sessions, be sure to utilize Zacks.com.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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