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Cummins (CMI) Outpaces Stock Market Gains: What You Should Know

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Cummins (CMI - Free Report) closed the most recent trading day at $237.04, moving +1.49% from the previous trading session. This change outpaced the S&P 500's 0.84% gain on the day. Elsewhere, the Dow gained 0.96%, while the tech-heavy Nasdaq added 0.81%.

Coming into today, shares of the engine maker had gained 0.53% in the past month. In that same time, the Auto-Tires-Trucks sector gained 5.71%, while the S&P 500 gained 0.19%.

Wall Street will be looking for positivity from Cummins as it approaches its next earnings report date. The company is expected to report EPS of $4.78, up 48.91% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.24 billion, up 12.41% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $19.77 per share and revenue of $33.23 billion, which would represent changes of +30.75% and +18.38%, respectively, from the prior year.

Any recent changes to analyst estimates for Cummins should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. Cummins currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Cummins is holding a Forward P/E ratio of 11.81. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 11.81.

Meanwhile, CMI's PEG ratio is currently 1.16. 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. The Automotive - Internal Combustion Engines was holding an average PEG ratio of 1.16 at yesterday's closing price.

The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 112, putting it in the top 45% 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

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