We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cummins (CMI) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
Cummins (CMI - Free Report) closed at $234.87 in the latest trading session, marking a -0.47% move from the prior day. This move lagged the S&P 500's daily gain of 0.03%.
Coming into today, shares of the engine maker had gained 1.26% in the past month. In that same time, the Auto-Tires-Trucks sector lost 0.87%, while the S&P 500 gained 3.02%.
CMI will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $4.23, up 18.49% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.09 billion, up 19.04% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $16.37 per share and revenue of $24.65 billion, which would represent changes of +36.3% and +24.41%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for CMI. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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 0.96% higher. CMI is currently a Zacks Rank #3 (Hold).
In terms of valuation, CMI is currently trading at a Forward P/E ratio of 14.42. For comparison, its industry has an average Forward P/E of 13.59, which means CMI is trading at a premium to the group.
We can also see that CMI currently has a PEG ratio of 1.29. 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 was holding an average PEG ratio of 1.29 at yesterday's closing price.
The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 249, which puts it in the bottom 2% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Cummins (CMI) Stock Sinks As Market Gains: What You Should Know
Cummins (CMI - Free Report) closed at $234.87 in the latest trading session, marking a -0.47% move from the prior day. This move lagged the S&P 500's daily gain of 0.03%.
Coming into today, shares of the engine maker had gained 1.26% in the past month. In that same time, the Auto-Tires-Trucks sector lost 0.87%, while the S&P 500 gained 3.02%.
CMI will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $4.23, up 18.49% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.09 billion, up 19.04% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $16.37 per share and revenue of $24.65 billion, which would represent changes of +36.3% and +24.41%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for CMI. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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 0.96% higher. CMI is currently a Zacks Rank #3 (Hold).
In terms of valuation, CMI is currently trading at a Forward P/E ratio of 14.42. For comparison, its industry has an average Forward P/E of 13.59, which means CMI is trading at a premium to the group.
We can also see that CMI currently has a PEG ratio of 1.29. 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 was holding an average PEG ratio of 1.29 at yesterday's closing price.
The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 249, which puts it in the bottom 2% 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.