Yahoo Finance Cummins (CMI) Stock Declines While Market Improves: Some Information for Investors
In the latest market close, Cummins (CMI) reached $281.01, with a -1.79% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 0.57%. Elsewhere, the Dow saw an upswing of 0.83%, while the tech-heavy Nasdaq appreciated by 0.39%.
Shares of the engine maker have appreciated by 7.37% over the course of the past month, outperforming the Auto-Tires-Trucks sector's loss of 2.74% and the S&P 500's gain of 2.97%.
Market participants will be closely following the financial results of Cummins in its upcoming release. The company is expected to report EPS of $5.09, down 8.29% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.35 billion, down 1.2% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $18.37 per share and revenue of $32.9 billion, indicating changes of -6.7% and -3.41%, respectively, compared to the previous 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.84% lower within the past month. 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 15.57. This represents no noticeable deviation compared to its industry's average Forward P/E of 15.57.
It is also worth noting that CMI currently has a PEG ratio of 1.94. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Automotive - Internal Combustion Engines industry was having an average PEG ratio of 1.94.
The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 99, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 Inc. (CMI) : Free Stock Analysis Report
