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) Gains As Market Dips: What You Should Know
Read MoreHide Full Article
In the latest trading session, Cummins (CMI - Free Report) closed at $197.77, marking a +1.27% move from the previous day. This change outpaced the S&P 500's 0.74% loss on the day.
Coming into today, shares of the engine maker had lost 12.1% in the past month. In that same time, the Auto-Tires-Trucks sector lost 12.36%, while the S&P 500 lost 4.6%.
Cummins will be looking to display strength as it nears its next earnings release. In that report, analysts expect Cummins to post earnings of $3.62 per share. This would mark a year-over-year decline of 10.4%. Our most recent consensus estimate is calling for quarterly revenue of $6.02 billion, down 1.14% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.57 per share and revenue of $25.64 billion. These totals would mark changes of +19.77% and +6.75%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Cummins. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 has moved 0.9% lower within the past month. Cummins is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Cummins's current valuation metrics, including its Forward P/E ratio of 11.12. This represents a premium compared to its industry's average Forward P/E of 9.87.
It is also worth noting that CMI currently has a PEG ratio of 1.26. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Internal Combustion Engines industry currently had an average PEG ratio of 1.26 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 115, which puts it in the top 46% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Cummins (CMI) Gains As Market Dips: What You Should Know
In the latest trading session, Cummins (CMI - Free Report) closed at $197.77, marking a +1.27% move from the previous day. This change outpaced the S&P 500's 0.74% loss on the day.
Coming into today, shares of the engine maker had lost 12.1% in the past month. In that same time, the Auto-Tires-Trucks sector lost 12.36%, while the S&P 500 lost 4.6%.
Cummins will be looking to display strength as it nears its next earnings release. In that report, analysts expect Cummins to post earnings of $3.62 per share. This would mark a year-over-year decline of 10.4%. Our most recent consensus estimate is calling for quarterly revenue of $6.02 billion, down 1.14% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.57 per share and revenue of $25.64 billion. These totals would mark changes of +19.77% and +6.75%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Cummins. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 has moved 0.9% lower within the past month. Cummins is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Cummins's current valuation metrics, including its Forward P/E ratio of 11.12. This represents a premium compared to its industry's average Forward P/E of 9.87.
It is also worth noting that CMI currently has a PEG ratio of 1.26. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Internal Combustion Engines industry currently had an average PEG ratio of 1.26 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 115, which puts it in the top 46% 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.