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Cummins (CMI) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Cummins (CMI - Free Report) closed at $256.22, marking a -0.62% move from the previous day. This change lagged the S&P 500's 0.02% loss on the day. Elsewhere, the Dow gained 0.23%, while the tech-heavy Nasdaq lost 0.12%.
Heading into today, shares of the engine maker had gained 7.59% over the past month, lagging the Auto-Tires-Trucks sector's gain of 21.24% and outpacing the S&P 500's gain of 5.14% in that time.
Cummins will be looking to display strength as it nears its next earnings release, which is expected to be August 3, 2023. In that report, analysts expect Cummins to post earnings of $5.19 per share. This would mark year-over-year growth of 8.81%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.28 billion, up 25.72% from the year-ago period.
CMI's full-year Zacks Consensus Estimates are calling for earnings of $19.85 per share and revenue of $32.87 billion. These results would represent year-over-year changes of +31.28% and +17.08%, respectively.
Investors might also notice recent changes to analyst estimates for Cummins. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 0.59% higher within the past month. Cummins currently has a Zacks Rank of #3 (Hold).
Investors should also note Cummins's current valuation metrics, including its Forward P/E ratio of 12.99. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 12.99.
Meanwhile, CMI's PEG ratio is currently 1.43. 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. Automotive - Internal Combustion Engines stocks are, on average, holding a PEG ratio of 1.43 based on yesterday's closing prices.
The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 121, which puts it in the top 49% 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.
To follow CMI in the coming trading sessions, be sure to utilize Zacks.com.
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Cummins (CMI) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Cummins (CMI - Free Report) closed at $256.22, marking a -0.62% move from the previous day. This change lagged the S&P 500's 0.02% loss on the day. Elsewhere, the Dow gained 0.23%, while the tech-heavy Nasdaq lost 0.12%.
Heading into today, shares of the engine maker had gained 7.59% over the past month, lagging the Auto-Tires-Trucks sector's gain of 21.24% and outpacing the S&P 500's gain of 5.14% in that time.
Cummins will be looking to display strength as it nears its next earnings release, which is expected to be August 3, 2023. In that report, analysts expect Cummins to post earnings of $5.19 per share. This would mark year-over-year growth of 8.81%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.28 billion, up 25.72% from the year-ago period.
CMI's full-year Zacks Consensus Estimates are calling for earnings of $19.85 per share and revenue of $32.87 billion. These results would represent year-over-year changes of +31.28% and +17.08%, respectively.
Investors might also notice recent changes to analyst estimates for Cummins. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 0.59% higher within the past month. Cummins currently has a Zacks Rank of #3 (Hold).
Investors should also note Cummins's current valuation metrics, including its Forward P/E ratio of 12.99. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 12.99.
Meanwhile, CMI's PEG ratio is currently 1.43. 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. Automotive - Internal Combustion Engines stocks are, on average, holding a PEG ratio of 1.43 based on yesterday's closing prices.
The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 121, which puts it in the top 49% 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.
To follow CMI in the coming trading sessions, be sure to utilize Zacks.com.