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Cummins (CMI) Gains As Market Dips: What You Should Know
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In the latest trading session, Cummins (CMI - Free Report) closed at $218.14, marking a +0.14% move from the previous day. This move outpaced the S&P 500's daily loss of 0.26%. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq lost 0.04%.
Heading into today, shares of the engine maker had gained 0.9% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 4.25% and lagging the S&P 500's gain of 4.82% in that time.
Cummins will be looking to display strength as it nears its next earnings release. 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, our latest consensus estimate is calling for revenue of $5.8 billion, down 0.47% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.20 per share and revenue of $23.98 billion, which would represent changes of +26.56% and +21.06%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Cummins. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% lower. 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 14.33 right now. For comparison, its industry has an average Forward P/E of 12.89, which means Cummins is trading at a premium to the group.
We can also see that CMI currently has a PEG ratio of 1.28. 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. CMI's industry had an average PEG ratio of 1.28 as of yesterday's close.
The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 247, which puts it in the bottom 3% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Cummins (CMI) Gains As Market Dips: What You Should Know
In the latest trading session, Cummins (CMI - Free Report) closed at $218.14, marking a +0.14% move from the previous day. This move outpaced the S&P 500's daily loss of 0.26%. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq lost 0.04%.
Heading into today, shares of the engine maker had gained 0.9% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 4.25% and lagging the S&P 500's gain of 4.82% in that time.
Cummins will be looking to display strength as it nears its next earnings release. 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, our latest consensus estimate is calling for revenue of $5.8 billion, down 0.47% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.20 per share and revenue of $23.98 billion, which would represent changes of +26.56% and +21.06%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Cummins. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% lower. 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 14.33 right now. For comparison, its industry has an average Forward P/E of 12.89, which means Cummins is trading at a premium to the group.
We can also see that CMI currently has a PEG ratio of 1.28. 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. CMI's industry had an average PEG ratio of 1.28 as of yesterday's close.
The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 247, which puts it in the bottom 3% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.