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Cummins (CMI) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Cummins (CMI - Free Report) closed at $231.08, marking a -0.75% move from the previous day. This move lagged the S&P 500's daily gain of 1.33%. Meanwhile, the Dow gained 1.14%, and the Nasdaq, a tech-heavy index, added 2.94%.
Heading into today, shares of the engine maker had gained 1.01% over the past month, lagging the Auto-Tires-Trucks sector's gain of 12.77% and the S&P 500's gain of 6.11% in that time.
Investors will be hoping for strength from Cummins as it approaches its next earnings release, which is expected to be May 2, 2023. The company is expected to report EPS of $4.70, up 16.34% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8 billion, up 25.27% from the prior-year quarter.
CMI's full-year Zacks Consensus Estimates are calling for earnings of $18.93 per share and revenue of $32.06 billion. These results would represent year-over-year changes of +25.2% and +14.19%, respectively.
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 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.14% lower. Cummins currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, Cummins is holding a Forward P/E ratio of 12.3. This valuation marks a premium compared to its industry's average Forward P/E of 11.86.
It is also worth noting that CMI currently has a PEG ratio of 1.35. 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 was holding an average PEG ratio of 1.35 at yesterday's closing price.
The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 223, putting it in the bottom 12% 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) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Cummins (CMI - Free Report) closed at $231.08, marking a -0.75% move from the previous day. This move lagged the S&P 500's daily gain of 1.33%. Meanwhile, the Dow gained 1.14%, and the Nasdaq, a tech-heavy index, added 2.94%.
Heading into today, shares of the engine maker had gained 1.01% over the past month, lagging the Auto-Tires-Trucks sector's gain of 12.77% and the S&P 500's gain of 6.11% in that time.
Investors will be hoping for strength from Cummins as it approaches its next earnings release, which is expected to be May 2, 2023. The company is expected to report EPS of $4.70, up 16.34% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8 billion, up 25.27% from the prior-year quarter.
CMI's full-year Zacks Consensus Estimates are calling for earnings of $18.93 per share and revenue of $32.06 billion. These results would represent year-over-year changes of +25.2% and +14.19%, respectively.
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 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.14% lower. Cummins currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, Cummins is holding a Forward P/E ratio of 12.3. This valuation marks a premium compared to its industry's average Forward P/E of 11.86.
It is also worth noting that CMI currently has a PEG ratio of 1.35. 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 was holding an average PEG ratio of 1.35 at yesterday's closing price.
The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 223, putting it in the bottom 12% 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.