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 $237.19, marking a +0.67% move from the previous day. This move outpaced the S&P 500's daily loss of 0.9%. Elsewhere, the Dow lost 0.5%, while the tech-heavy Nasdaq lost 0.26%.
Heading into today, shares of the engine maker had lost 5.88% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 10.31% and lagging the S&P 500's loss of 2.66% in that time.
Investors will be hoping for strength from Cummins as it approaches its next earnings release. The company is expected to report EPS of $4.98, up 74.74% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.34 billion, up 25.52% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.87 per share and revenue of $27.69 billion. These totals would mark changes of +8.18% and +15.28%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Cummins. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.2% lower. Cummins currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Cummins is currently trading at a Forward P/E ratio of 14.85. Its industry sports an average Forward P/E of 13.71, so we one might conclude that Cummins is trading at a premium comparatively.
Meanwhile, CMI's PEG ratio is currently 1.63. 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 1.63 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 95, which puts it in the top 38% 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.
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 $237.19, marking a +0.67% move from the previous day. This move outpaced the S&P 500's daily loss of 0.9%. Elsewhere, the Dow lost 0.5%, while the tech-heavy Nasdaq lost 0.26%.
Heading into today, shares of the engine maker had lost 5.88% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 10.31% and lagging the S&P 500's loss of 2.66% in that time.
Investors will be hoping for strength from Cummins as it approaches its next earnings release. The company is expected to report EPS of $4.98, up 74.74% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.34 billion, up 25.52% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.87 per share and revenue of $27.69 billion. These totals would mark changes of +8.18% and +15.28%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Cummins. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.2% lower. Cummins currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Cummins is currently trading at a Forward P/E ratio of 14.85. Its industry sports an average Forward P/E of 13.71, so we one might conclude that Cummins is trading at a premium comparatively.
Meanwhile, CMI's PEG ratio is currently 1.63. 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 1.63 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 95, which puts it in the top 38% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.