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Cummins (CMI) Increases Despite Market Slip: Here's What You Need to Know
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The most recent trading session ended with Cummins (CMI - Free Report) standing at $270.24, reflecting a +0.17% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily loss of 0.19%. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq depreciated by 0.54%.
Prior to today's trading, shares of the engine maker had gained 6% over the past month. This has outpaced the Auto-Tires-Trucks sector's gain of 0.68% and the S&P 500's gain of 3.18% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Cummins in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $5.10, reflecting an 8.11% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.31 billion, down 1.72% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $18.38 per share and a revenue of $32.94 billion, demonstrating changes of -6.65% and -3.29%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cummins. These recent revisions tend to reflect the evolving nature of short-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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.94% fall in the Zacks Consensus EPS estimate. Right now, Cummins possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Cummins is currently trading at a Forward P/E ratio of 14.68. This valuation marks no noticeable deviation compared to its industry's average Forward P/E of 14.68.
One should further note that CMI currently holds a PEG ratio of 1.83. 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. As the market closed yesterday, the Automotive - Internal Combustion Engines industry was having an average PEG ratio of 1.83.
The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Cummins (CMI) Increases Despite Market Slip: Here's What You Need to Know
The most recent trading session ended with Cummins (CMI - Free Report) standing at $270.24, reflecting a +0.17% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily loss of 0.19%. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq depreciated by 0.54%.
Prior to today's trading, shares of the engine maker had gained 6% over the past month. This has outpaced the Auto-Tires-Trucks sector's gain of 0.68% and the S&P 500's gain of 3.18% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Cummins in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $5.10, reflecting an 8.11% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.31 billion, down 1.72% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $18.38 per share and a revenue of $32.94 billion, demonstrating changes of -6.65% and -3.29%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cummins. These recent revisions tend to reflect the evolving nature of short-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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.94% fall in the Zacks Consensus EPS estimate. Right now, Cummins possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Cummins is currently trading at a Forward P/E ratio of 14.68. This valuation marks no noticeable deviation compared to its industry's average Forward P/E of 14.68.
One should further note that CMI currently holds a PEG ratio of 1.83. 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. As the market closed yesterday, the Automotive - Internal Combustion Engines industry was having an average PEG ratio of 1.83.
The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.