Cummins (CMI) Gains As Market Dips: What You Should Know

Cummins (CMI) closed the latest trading day at $228.80, indicating a +0.24% change from the previous session's end. This change outpaced the S&P 500's 0.01% loss on the day. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq decreased by 0.25%.

The engine maker's shares have seen a decrease of 4.23% over the last month, surpassing the Auto-Tires-Trucks sector's loss of 4.71% and falling behind the S&P 500's loss of 1.6%.

The investment community will be closely monitoring the performance of Cummins in its forthcoming earnings report. The company is scheduled to release its earnings on November 2, 2023. On that day, Cummins is projected to report earnings of $4.70 per share, which would represent year-over-year growth of 46.42%. Our most recent consensus estimate is calling for quarterly revenue of $8.19 billion, up 11.74% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $19.66 per share and a revenue of $33.13 billion, signifying shifts of +30.03% and +18.02%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Cummins. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 0.65% fall in the Zacks Consensus EPS estimate. Cummins presently features a Zacks Rank of #3 (Hold).

Investors should also note Cummins's current valuation metrics, including its Forward P/E ratio of 11.61. This represents no noticeable deviation compared to its industry's average Forward P/E of 11.61.

One should further note that CMI currently holds a PEG ratio of 1.12. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. CMI's industry had an average PEG ratio of 1.12 as of yesterday's close.

The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 103, placing it within the top 41% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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