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Cummins (CMI) Stock Sinks As Market Gains: What You Should Know
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Cummins (CMI - Free Report) closed at $227.66 in the latest trading session, marking a -0.29% move from the prior day. This change lagged the S&P 500's 0.15% gain on the day.
Prior to today's trading, shares of the engine maker had lost 3.65% over the past month. This has lagged the Auto-Tires-Trucks sector's gain of 4.96% and the S&P 500's loss of 0.58% in that time.
Investors will be hoping for strength from CMI as it approaches its next earnings release. The company is expected to report EPS of $4.23, up 18.49% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.09 billion, up 19.04% from the year-ago period.
CMI's full-year Zacks Consensus Estimates are calling for earnings of $16.37 per share and revenue of $24.65 billion. These results would represent year-over-year changes of +36.3% and +24.41%, respectively.
Any recent changes to analyst estimates for CMI should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. CMI is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that CMI has a Forward P/E ratio of 13.95 right now. This represents a premium compared to its industry's average Forward P/E of 13.01.
Also, we should mention that CMI has a PEG ratio of 1.25. 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. Automotive - Internal Combustion Engines stocks are, on average, holding a PEG ratio of 1.25 based on yesterday's closing prices.
The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 125, which puts it in the top 50% 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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Cummins (CMI) Stock Sinks As Market Gains: What You Should Know
Cummins (CMI - Free Report) closed at $227.66 in the latest trading session, marking a -0.29% move from the prior day. This change lagged the S&P 500's 0.15% gain on the day.
Prior to today's trading, shares of the engine maker had lost 3.65% over the past month. This has lagged the Auto-Tires-Trucks sector's gain of 4.96% and the S&P 500's loss of 0.58% in that time.
Investors will be hoping for strength from CMI as it approaches its next earnings release. The company is expected to report EPS of $4.23, up 18.49% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.09 billion, up 19.04% from the year-ago period.
CMI's full-year Zacks Consensus Estimates are calling for earnings of $16.37 per share and revenue of $24.65 billion. These results would represent year-over-year changes of +36.3% and +24.41%, respectively.
Any recent changes to analyst estimates for CMI should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. CMI is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that CMI has a Forward P/E ratio of 13.95 right now. This represents a premium compared to its industry's average Forward P/E of 13.01.
Also, we should mention that CMI has a PEG ratio of 1.25. 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. Automotive - Internal Combustion Engines stocks are, on average, holding a PEG ratio of 1.25 based on yesterday's closing prices.
The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 125, which puts it in the top 50% 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.