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Cummins (CMI) Dips More Than Broader Markets: What You Should Know
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Cummins (CMI - Free Report) closed the most recent trading day at $252.17, moving -0.91% from the previous trading session. This move lagged the S&P 500's daily loss of 0.1%. At the same time, the Dow added 0.33%, and the tech-heavy Nasdaq lost 5.8%.
Heading into today, shares of the engine maker had gained 7.29% over the past month, lagging the Auto-Tires-Trucks sector's gain of 21.64% and outpacing the S&P 500's gain of 3.39% in that time.
Investors will be hoping for strength from Cummins as it approaches its next earnings release, which is expected to be August 3, 2023. In that report, analysts expect Cummins to post earnings of $5.16 per share. This would mark year-over-year growth of 8.18%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.26 billion, up 25.38% from the year-ago period.
CMI's full-year Zacks Consensus Estimates are calling for earnings of $19.80 per share and revenue of $32.84 billion. These results would represent year-over-year changes of +30.95% and +16.98%, respectively.
Investors should also note any 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.36% higher within the past month. Cummins is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, Cummins currently has a Forward P/E ratio of 12.85. For comparison, its industry has an average Forward P/E of 12.11, which means Cummins is trading at a premium to the group.
Meanwhile, CMI's PEG ratio is currently 1.41. 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. CMI's industry had an average PEG ratio of 1.41 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 7, which puts it in the top 3% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Cummins (CMI) Dips More Than Broader Markets: What You Should Know
Cummins (CMI - Free Report) closed the most recent trading day at $252.17, moving -0.91% from the previous trading session. This move lagged the S&P 500's daily loss of 0.1%. At the same time, the Dow added 0.33%, and the tech-heavy Nasdaq lost 5.8%.
Heading into today, shares of the engine maker had gained 7.29% over the past month, lagging the Auto-Tires-Trucks sector's gain of 21.64% and outpacing the S&P 500's gain of 3.39% in that time.
Investors will be hoping for strength from Cummins as it approaches its next earnings release, which is expected to be August 3, 2023. In that report, analysts expect Cummins to post earnings of $5.16 per share. This would mark year-over-year growth of 8.18%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.26 billion, up 25.38% from the year-ago period.
CMI's full-year Zacks Consensus Estimates are calling for earnings of $19.80 per share and revenue of $32.84 billion. These results would represent year-over-year changes of +30.95% and +16.98%, respectively.
Investors should also note any 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.36% higher within the past month. Cummins is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, Cummins currently has a Forward P/E ratio of 12.85. For comparison, its industry has an average Forward P/E of 12.11, which means Cummins is trading at a premium to the group.
Meanwhile, CMI's PEG ratio is currently 1.41. 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. CMI's industry had an average PEG ratio of 1.41 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 7, which puts it in the top 3% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.