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) Stock Moves -0.62%: What You Should Know
Read MoreHide Full Article
In the latest trading session, Cummins (CMI - Free Report) closed at $233.46, marking a -0.62% move from the previous day. This move was narrower than the S&P 500's daily loss of 1.58%. At the same time, the Dow lost 1.02%, and the tech-heavy Nasdaq lost 11.95%.
Heading into today, shares of the engine maker had gained 3.51% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 1.25% and lagging the S&P 500's gain of 4.27% in that time.
Cummins will be looking to display strength as it nears its next earnings release, which is expected to be May 2, 2023. On that day, Cummins is projected to report earnings of $4.76 per share, which would represent year-over-year growth of 17.82%. Meanwhile, our latest consensus estimate is calling for revenue of $8.01 billion, up 25.48% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $19.03 per share and revenue of $32.05 billion. These totals would mark changes of +25.86% and +14.15%, 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.41% higher. 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 12.34. For comparison, its industry has an average Forward P/E of 11.77, which means Cummins is trading at a premium to the group.
We can also see that CMI currently has a PEG ratio of 1.36. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Automotive - Internal Combustion Engines industry currently had an average PEG ratio of 1.36 as of yesterday's close.
The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 219, putting it in the bottom 14% 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.
You can find more information on all of these metrics, and much 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) Stock Moves -0.62%: What You Should Know
In the latest trading session, Cummins (CMI - Free Report) closed at $233.46, marking a -0.62% move from the previous day. This move was narrower than the S&P 500's daily loss of 1.58%. At the same time, the Dow lost 1.02%, and the tech-heavy Nasdaq lost 11.95%.
Heading into today, shares of the engine maker had gained 3.51% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 1.25% and lagging the S&P 500's gain of 4.27% in that time.
Cummins will be looking to display strength as it nears its next earnings release, which is expected to be May 2, 2023. On that day, Cummins is projected to report earnings of $4.76 per share, which would represent year-over-year growth of 17.82%. Meanwhile, our latest consensus estimate is calling for revenue of $8.01 billion, up 25.48% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $19.03 per share and revenue of $32.05 billion. These totals would mark changes of +25.86% and +14.15%, 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.41% higher. 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 12.34. For comparison, its industry has an average Forward P/E of 11.77, which means Cummins is trading at a premium to the group.
We can also see that CMI currently has a PEG ratio of 1.36. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Automotive - Internal Combustion Engines industry currently had an average PEG ratio of 1.36 as of yesterday's close.
The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 219, putting it in the bottom 14% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.