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Cummins (CMI) Stock Sinks As Market Gains: What You Should Know
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Cummins (CMI - Free Report) closed at $234.31 in the latest trading session, marking a -1.81% move from the prior day. This move lagged the S&P 500's daily gain of 0.08%. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 0.61%.
Prior to today's trading, shares of the engine maker had gained 12.23% over the past month. This has lagged the Auto-Tires-Trucks sector's gain of 26.58% and outpaced the S&P 500's gain of 6.1% in that time.
Wall Street will be looking for positivity from Cummins as it approaches its next earnings report date. On that day, Cummins is projected to report earnings of $5.16 per share, which would represent year-over-year growth of 8.18%. Our most recent consensus estimate is calling for quarterly revenue of $8.24 billion, up 25.11% from the year-ago period.
CMI's full-year Zacks Consensus Estimates are calling for earnings of $19.81 per share and revenue of $32.81 billion. These results would represent year-over-year changes of +31.02% and +16.87%, respectively.
It is also important to note the recent changes to analyst estimates for Cummins. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.54% higher. Cummins currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Cummins currently has a Forward P/E ratio of 12.05. For comparison, its industry has an average Forward P/E of 12.05, which means Cummins is trading at a no noticeable deviation to the group.
Meanwhile, CMI's PEG ratio is currently 1.32. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Automotive - Internal Combustion Engines stocks are, on average, holding a PEG ratio of 1.32 based on yesterday's closing prices.
The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 116, putting it in the top 47% 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.
To follow CMI in the coming trading sessions, be sure to utilize Zacks.com.
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Cummins (CMI) Stock Sinks As Market Gains: What You Should Know
Cummins (CMI - Free Report) closed at $234.31 in the latest trading session, marking a -1.81% move from the prior day. This move lagged the S&P 500's daily gain of 0.08%. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 0.61%.
Prior to today's trading, shares of the engine maker had gained 12.23% over the past month. This has lagged the Auto-Tires-Trucks sector's gain of 26.58% and outpaced the S&P 500's gain of 6.1% in that time.
Wall Street will be looking for positivity from Cummins as it approaches its next earnings report date. On that day, Cummins is projected to report earnings of $5.16 per share, which would represent year-over-year growth of 8.18%. Our most recent consensus estimate is calling for quarterly revenue of $8.24 billion, up 25.11% from the year-ago period.
CMI's full-year Zacks Consensus Estimates are calling for earnings of $19.81 per share and revenue of $32.81 billion. These results would represent year-over-year changes of +31.02% and +16.87%, respectively.
It is also important to note the recent changes to analyst estimates for Cummins. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.54% higher. Cummins currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Cummins currently has a Forward P/E ratio of 12.05. For comparison, its industry has an average Forward P/E of 12.05, which means Cummins is trading at a no noticeable deviation to the group.
Meanwhile, CMI's PEG ratio is currently 1.32. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Automotive - Internal Combustion Engines stocks are, on average, holding a PEG ratio of 1.32 based on yesterday's closing prices.
The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 116, putting it in the top 47% 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.
To follow CMI in the coming trading sessions, be sure to utilize Zacks.com.