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Cummins (CMI) Outpaces Stock Market Gains: What You Should Know
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Cummins (CMI - Free Report) closed at $213.97 in the latest trading session, marking a +1.45% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.62%. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, lost 0.03%.
Prior to today's trading, shares of the engine maker had lost 6.61% over the past month. This has was narrower than the Auto-Tires-Trucks sector's loss of 10.72% and lagged the S&P 500's gain of 0.39% in that time.
Wall Street will be looking for positivity from Cummins as it approaches its next earnings report date. On that day, Cummins is projected to report earnings of $3.14 per share, which would represent a year-over-year decline of 6.55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.8 billion, down 0.47% from the year-ago period.
CMI's full-year Zacks Consensus Estimates are calling for earnings of $15.20 per share and revenue of $23.98 billion. These results would represent year-over-year changes of +26.56% and +21.06%, respectively.
Any recent changes to analyst estimates for Cummins should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.02% lower. Cummins is currently a Zacks Rank #3 (Hold).
In terms of valuation, Cummins is currently trading at a Forward P/E ratio of 13.87. Its industry sports an average Forward P/E of 12.58, so we one might conclude that Cummins is trading at a premium comparatively.
It is also worth noting that CMI currently has a PEG ratio of 1.24. 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 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 237, putting it in the bottom 7% 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) Outpaces Stock Market Gains: What You Should Know
Cummins (CMI - Free Report) closed at $213.97 in the latest trading session, marking a +1.45% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.62%. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, lost 0.03%.
Prior to today's trading, shares of the engine maker had lost 6.61% over the past month. This has was narrower than the Auto-Tires-Trucks sector's loss of 10.72% and lagged the S&P 500's gain of 0.39% in that time.
Wall Street will be looking for positivity from Cummins as it approaches its next earnings report date. On that day, Cummins is projected to report earnings of $3.14 per share, which would represent a year-over-year decline of 6.55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.8 billion, down 0.47% from the year-ago period.
CMI's full-year Zacks Consensus Estimates are calling for earnings of $15.20 per share and revenue of $23.98 billion. These results would represent year-over-year changes of +26.56% and +21.06%, respectively.
Any recent changes to analyst estimates for Cummins should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.02% lower. Cummins is currently a Zacks Rank #3 (Hold).
In terms of valuation, Cummins is currently trading at a Forward P/E ratio of 13.87. Its industry sports an average Forward P/E of 12.58, so we one might conclude that Cummins is trading at a premium comparatively.
It is also worth noting that CMI currently has a PEG ratio of 1.24. 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 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 237, putting it in the bottom 7% 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.