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Cummins (CMI) Gains As Market Dips: What You Should Know
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In the latest trading session, Cummins (CMI - Free Report) closed at $259.97, marking a +0.43% move from the previous day. This change outpaced the S&P 500's 0.68% loss on the day. Elsewhere, the Dow gained 0.47%, while the tech-heavy Nasdaq lost 3.19%.
Heading into today, shares of the engine maker had gained 10.98% over the past month, lagging the Auto-Tires-Trucks sector's gain of 23.63% and outpacing the S&P 500's gain of 3.58% 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 25.49% from the year-ago period.
CMI's full-year Zacks Consensus Estimates are calling for earnings of $19.82 per share and revenue of $32.87 billion. These results would represent year-over-year changes of +31.08% and +17.09%, respectively.
Investors should also note any recent changes to analyst estimates for Cummins. These revisions help to show the ever-changing nature of 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.
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 0.43% higher within the past month. Cummins is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note Cummins's current valuation metrics, including its Forward P/E ratio of 13.06. Its industry sports an average Forward P/E of 13.06, so we one might conclude that Cummins is trading at a no noticeable deviation comparatively.
Also, we should mention that CMI has a PEG ratio of 1.44. 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 industry currently had an average PEG ratio of 1.44 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 1, putting it in the top 1% 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.
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Cummins (CMI) Gains As Market Dips: What You Should Know
In the latest trading session, Cummins (CMI - Free Report) closed at $259.97, marking a +0.43% move from the previous day. This change outpaced the S&P 500's 0.68% loss on the day. Elsewhere, the Dow gained 0.47%, while the tech-heavy Nasdaq lost 3.19%.
Heading into today, shares of the engine maker had gained 10.98% over the past month, lagging the Auto-Tires-Trucks sector's gain of 23.63% and outpacing the S&P 500's gain of 3.58% 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 25.49% from the year-ago period.
CMI's full-year Zacks Consensus Estimates are calling for earnings of $19.82 per share and revenue of $32.87 billion. These results would represent year-over-year changes of +31.08% and +17.09%, respectively.
Investors should also note any recent changes to analyst estimates for Cummins. These revisions help to show the ever-changing nature of 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.
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 0.43% higher within the past month. Cummins is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note Cummins's current valuation metrics, including its Forward P/E ratio of 13.06. Its industry sports an average Forward P/E of 13.06, so we one might conclude that Cummins is trading at a no noticeable deviation comparatively.
Also, we should mention that CMI has a PEG ratio of 1.44. 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 industry currently had an average PEG ratio of 1.44 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 1, putting it in the top 1% 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.