Cummins Inc. (CMI - Free Report) is on track with the delivery of eight all-electric vehicles to the United States Postal Service. Equipped with Cummins products, these fully-electric PowerDrive equipped vans will support in eliminating emissions, and decreasing fuel usage and maintenance costs.
Apart from delivering the vans, Cummins will support the US Postal Service with operator training, vehicle support and data collection for smooth running of vehicles. All the eight vans by Cummins will be on the road by Mar 31, 2019.
The US Postal Service will test these fully-electric vans that have an electric range of up to 85 miles, with filled load on urban drive cycles. These vehicles’ direct drive architecture offers enhanced performance compared with vehicles with gasoline engines. Further, these vans need an eight-hour period to get fully charged, using the same charging system used by passenger electric vehicles.
Cummins Inc. Price and Consensus
In 2017, Cummins announced the decision to invest $500 million toward the electrification of its offerings across regions over the span of three years. In the subsequent year, the company collaborated with many on and off-highway OEMs, with an aim to develop electrification solutions for buses, trucks, commercial vehicles, excavators and drayage trucks.
Beside the recent testing collaboration with US Postal Service, the company has over 11 million miles of testing and development on its vehicles with electrified power technology. Cummins also started selling battery electric power train systems to Bluebird, which will be used for school buses in the United States. Further, the company will introduce its battery electric power train systems to more customers through the collaboration with Geely in 2019.
However, investments to develop technology and commencement of full operations have not led to profit for Cummins’ Electrified Power business yet. In 2018, the segment’s EBITDA was negative $90 million. For the current year, the unit’s net expenses are projected to be $120 million to $150 million majorly due to increased investments.
Zacks Rank & Stocks to Consider
Cummins currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader auto sector are Fox Factory Holding Corporation (FOXF - Free Report) , CarGurus, Inc. (CARG - Free Report) and General Motors Company (GM - Free Report) , each presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fox Factory has expected long-term growth rate of 17.9%. The Zacks Consensus Estimate for the company’s earnings for 2019 has been revised 2.9% upward over the past 30 days.
CarGurus has expected long-term growth rate of 5%. The Zacks Consensus Estimate for the company’s earnings for 2019 has been revised 10.5% upward over the past seven days.
General Motors has expected long-term growth rate of 8.5%. The Zacks Consensus Estimate for the company’s earnings for 2019 has been revised 4.8% upward over the past 30 days.
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