On Aug 3, we issued an updated research report on Cummins Inc.CMI .
Headquartered in Columbus, IN, Cummins is a leading global designer, manufacturer, and distributor of diesel and natural gas engines, electric power generation systems, engine-related components, fuel systems, controls, and air handling systems.
Higher demand for engines and components for heavy- and medium-duty trucks, along with an improved demand for mining and power generation equipment, is aiding the company. In 2018, it is poised to benefit from an increased engine and component demand for heavy- and medium-duty trucks in North America. Among international markets, the company has raised its outlook for light, medium and heavy-duty truck market in China, and Brazil. Moreover, it anticipates strong demand from mining customers and the power generation equipment market.
The company is focusing on introducing innovative products and strategies such as partnerships to obtain high returns. In May 2018, the company announced the formation of a 50:50 joint venture with JAIC Motors to develop fuel-efficient and high-quality products. Cummins anticipates rise in China's market share through JAIC's partnership and the launch of new products with its four partners in China to be in line with the region's NS VI emission standards.
The stock has seen the Zacks Consensus Estimate for current-quarter earnings being revised 6% upward over the past 30 days.
In the past year, shares of Cummins have underperformed sector it belongs to. Over this time frame, shares of the company declined 11.5%, whereas the sector increased 3%.
Zacks Rank & Other Key Picks
Cummins currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the auto space are PACCAR Inc. PCAR , Fox Factory Holding Corp. FOXF and AB Volvo VLVLY . While both PACCAR and Fox Factory Holding sport a Zacks Rank #1 (Strong Buy), Volvo carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .
PACCAR has an expected long-term growth rate of 10.8%. Over the past month, shares of the company have moved up 4.2%.
Fox Factory has an expected long-term growth rate of 15.8%. Shares of the company have risen 55.6% over the past year.
AB Volvo has an expected long-term growth rate of 15%. Over the past month, shares of the company have gained 2.4%.
Looking for Stocks With Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportPACCAR Inc. (PCAR): Free Stock Analysis ReportFox Factory Holding Corp. (FOXF): Free Stock Analysis ReportAB Volvo (VLVLY): Free Stock Analysis ReportCummins Inc. (CMI): Free Stock Analysis ReportTo read this article on Zacks.com click here.