Cummins Inc. ( CMI Quick Quote CMI - Free Report) recently signed a memorandum of understanding (MoU) with Komatsu Ltd. for the development of zero-emissions haulage equipment. Komatsu is a global provider of equipment and services for the construction and mining industries. Per the agreement, both companies will initially focus on zero-emission power technologies, which include hydrogen fuel cell solutions for large mining haul truck applications. Together they will work toward building a partnership of diesel engines across a wide range of mining and construction equipment. The venture is part of Cummins’ Destination-Zero strategy to bring down its products’ greenhouse gas and air quality impacts and reach net zero emission by 2050. Cummins already has a broad portfolio of batteries, fuel cell systems and electrolyzers, which are the basics for de-carbonization. Komatsu’s expertise in mining and equipment design and integration paired with Cummins’ advanced power technologies, including hydrogen fuel cells, will expedite the de-carbonization of mining equipment. The partnership seeks to leverage each of their strong areas and promises to deliver sustainable products to customers. In another development, Cummins has joined forces with Hyliion Holdings Corp. ( HYLN Quick Quote HYLN - Free Report) , a leading player in electrified powertrain solutions for Class 8 semi-trucks. The deal will optimize Cummins’ natural gas engine as the generator for the Hypertruck ERX powertrain. Together, the companies intend to obtain environmental certifications for Cummins’ natural gas internal-combustion engines to be used in Hyliion’s Hypertruck ERX powertrain using onboard power generation to recharge batteries. The production of the Hypertruck ERX with the ISX12N Cummins’ natural gas power is slated to begin in late 2023. The Hypertruck ERX, an electric range-extender semi-truck powertrain solution, offers 75 miles of electric range and can achieve up to 1,000 miles of full range through the generator, so the fear of the battery running out of charge is reduced. Cummins’ ISX12N will be optimized with the Hyliion Hypertruck ERX, so that it can use the existing 700 natural gas stations across North America for low-cost refueling. Presently, both companies are leading the industry-wide transition to use alternative fuels to aim for zero-emission, with improved fuel efficiency and economic value for customers, while also meeting more stringent EPA and CARB certifications. The collaboration will be a stepping stone toward a more sustainable transportation industry and offering a portfolio of powertrains across many fuel options. Cummins has been actively engaged in driving cleaner transportation. In April, through its affiliate, Hydrogenics Europe N.V., it inked a deal to supply a 2.5-megawatt electrolyzer to Hysetco, a hydrogen mobility company owned by Total Energies, Air Liquide, Toyota, Kouros and others. The Hysetco project aims to create the largest hydrogen taxi fleet worldwide, fueled by 12 large hydrogen refueling stations, by 2024. Cummins broke ground with the deal as it looks to power the world’s largest hydrogen taxi. Zacks Rank & Key Picks
CMI carries a Zacks Rank #3 (Hold), currently.
Some better-ranked players in the auto space are Wabash National Corporation ( WNC Quick Quote WNC - Free Report) and Genuine Parts ( GPC Quick Quote GPC - Free Report) , carrying a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Wabash National has an expected earnings growth rate of 239.3% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days. Wabash National’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. WNC pulled off a trailing four-quarter earnings surprise of 51.26%, on average. The stock has declined 11.3% over the past year. Genuine Parts has an expected earnings growth rate of 13.6% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days. Genuine Parts’ earnings beat the Zacks Consensus Estimate in all the trailing four quarters. GPC pulled off a trailing four-quarter earnings surprise of 11.34%, on average. The stock has risen 7.1% over the past year.