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Why the Market Dipped But Cummins (CMI) Gained Today
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Cummins (CMI - Free Report) closed at $240.63 in the latest trading session, marking a +0.75% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.07%. On the other hand, the Dow registered a gain of 0.16%, and the technology-centric Nasdaq decreased by 0.36%.
Heading into today, shares of the engine maker had lost 0.72% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 12.12% and lagging the S&P 500's gain of 3.05% in that time.
Market participants will be closely following the financial results of Cummins in its upcoming release. The company plans to announce its earnings on February 6, 2024. The company is forecasted to report an EPS of $4.41, showcasing a 2.43% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $8.08 billion, showing a 3.93% escalation compared to the year-ago quarter.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.07% rise in the Zacks Consensus EPS estimate. At present, Cummins boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Cummins is currently being traded at a Forward P/E ratio of 12.38. For comparison, its industry has an average Forward P/E of 12.38, which means Cummins is trading at no noticeable deviation to the group.
We can additionally observe that CMI currently boasts a PEG ratio of 1.28. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Automotive - Internal Combustion Engines industry had an average PEG ratio of 1.28.
The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 111, placing it within the top 45% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Why the Market Dipped But Cummins (CMI) Gained Today
Cummins (CMI - Free Report) closed at $240.63 in the latest trading session, marking a +0.75% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.07%. On the other hand, the Dow registered a gain of 0.16%, and the technology-centric Nasdaq decreased by 0.36%.
Heading into today, shares of the engine maker had lost 0.72% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 12.12% and lagging the S&P 500's gain of 3.05% in that time.
Market participants will be closely following the financial results of Cummins in its upcoming release. The company plans to announce its earnings on February 6, 2024. The company is forecasted to report an EPS of $4.41, showcasing a 2.43% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $8.08 billion, showing a 3.93% escalation compared to the year-ago quarter.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.07% rise in the Zacks Consensus EPS estimate. At present, Cummins boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Cummins is currently being traded at a Forward P/E ratio of 12.38. For comparison, its industry has an average Forward P/E of 12.38, which means Cummins is trading at no noticeable deviation to the group.
We can additionally observe that CMI currently boasts a PEG ratio of 1.28. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Automotive - Internal Combustion Engines industry had an average PEG ratio of 1.28.
The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 111, placing it within the top 45% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.