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Cummins (CMI) Outpaces Stock Market Gains: What You Should Know
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Cummins (CMI - Free Report) closed at $227.96 in the latest trading session, marking a +1.51% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.15%.
Coming into today, shares of the engine maker had lost 5.24% in the past month. In that same time, the Auto-Tires-Trucks sector gained 2.16%, while the S&P 500 lost 4.67%.
Investors will be hoping for strength from CMI as it approaches its next earnings release. On that day, CMI is projected to report earnings of $4.06 per share, which would represent year-over-year growth of 13.73%. 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.
It is also important to note the recent changes to analyst estimates for CMI. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. CMI is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, CMI currently has a Forward P/E ratio of 13.72. For comparison, its industry has an average Forward P/E of 12.58, which means CMI is trading at a premium to the group.
Also, we should mention that CMI has a PEG ratio of 1.23. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Automotive - Internal Combustion Engines was holding an average PEG ratio of 1.23 at yesterday's closing price.
The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 249, putting 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Cummins (CMI) Outpaces Stock Market Gains: What You Should Know
Cummins (CMI - Free Report) closed at $227.96 in the latest trading session, marking a +1.51% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.15%.
Coming into today, shares of the engine maker had lost 5.24% in the past month. In that same time, the Auto-Tires-Trucks sector gained 2.16%, while the S&P 500 lost 4.67%.
Investors will be hoping for strength from CMI as it approaches its next earnings release. On that day, CMI is projected to report earnings of $4.06 per share, which would represent year-over-year growth of 13.73%. 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.
It is also important to note the recent changes to analyst estimates for CMI. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. CMI is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, CMI currently has a Forward P/E ratio of 13.72. For comparison, its industry has an average Forward P/E of 12.58, which means CMI is trading at a premium to the group.
Also, we should mention that CMI has a PEG ratio of 1.23. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Automotive - Internal Combustion Engines was holding an average PEG ratio of 1.23 at yesterday's closing price.
The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 249, putting 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.