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 $232.02, marking a +0.47% move from the previous day. This move outpaced the S&P 500's daily loss of 0.77%. At the same time, the Dow lost 0.65%, and the tech-heavy Nasdaq lost 2.23%.
Heading into today, shares of the engine maker had gained 9.47% over the past month, lagging the Auto-Tires-Trucks sector's gain of 20.51% and outpacing the S&P 500's gain of 4.66% 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 $5.16, up 8.18% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.24 billion, up 25.13% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $19.81 per share and revenue of $32.81 billion. These totals would mark changes of +31.02% and +16.88%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Cummins. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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 remained stagnant. Cummins is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Cummins has a Forward P/E ratio of 11.66 right now. For comparison, its industry has an average Forward P/E of 11.57, which means Cummins is trading at a premium to the group.
It is also worth noting that CMI currently has a PEG ratio of 1.28. 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. CMI's industry had an average PEG ratio of 1.28 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 115, putting it in the top 46% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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 $232.02, marking a +0.47% move from the previous day. This move outpaced the S&P 500's daily loss of 0.77%. At the same time, the Dow lost 0.65%, and the tech-heavy Nasdaq lost 2.23%.
Heading into today, shares of the engine maker had gained 9.47% over the past month, lagging the Auto-Tires-Trucks sector's gain of 20.51% and outpacing the S&P 500's gain of 4.66% 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 $5.16, up 8.18% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.24 billion, up 25.13% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $19.81 per share and revenue of $32.81 billion. These totals would mark changes of +31.02% and +16.88%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Cummins. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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 remained stagnant. Cummins is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Cummins has a Forward P/E ratio of 11.66 right now. For comparison, its industry has an average Forward P/E of 11.57, which means Cummins is trading at a premium to the group.
It is also worth noting that CMI currently has a PEG ratio of 1.28. 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. CMI's industry had an average PEG ratio of 1.28 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 115, putting it in the top 46% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.