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Cummins (CMI) Suffers a Larger Drop Than the General Market: Key Insights
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Cummins (CMI - Free Report) closed the latest trading day at $216.30, indicating a -1.32% change from the previous session's end. The stock's performance was behind the S&P 500's daily loss of 0.17%. Elsewhere, the Dow saw a downswing of 0.58%, while the tech-heavy Nasdaq appreciated by 0.27%.
Shares of the engine maker witnessed a loss of 5.02% over the previous month, beating the performance of the Auto-Tires-Trucks sector with its loss of 12.04% and underperforming the S&P 500's loss of 3.95%.
The upcoming earnings release of Cummins will be of great interest to investors. The company's earnings report is expected on November 2, 2023. The company's earnings per share (EPS) are projected to be $4.70, reflecting a 46.42% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $8.19 billion, up 11.74% from the prior-year quarter.
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.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Cummins. 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.6% decrease. Right now, Cummins possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Cummins currently has a Forward P/E ratio of 11.15. This expresses no noticeable deviation compared to the average Forward P/E of 11.15 of its industry.
Investors should also note that CMI has a PEG ratio of 1.08 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Automotive - Internal Combustion Engines industry currently had an average PEG ratio of 1.08 as of yesterday's close.
The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 101, which puts it in the top 41% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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) Suffers a Larger Drop Than the General Market: Key Insights
Cummins (CMI - Free Report) closed the latest trading day at $216.30, indicating a -1.32% change from the previous session's end. The stock's performance was behind the S&P 500's daily loss of 0.17%. Elsewhere, the Dow saw a downswing of 0.58%, while the tech-heavy Nasdaq appreciated by 0.27%.
Shares of the engine maker witnessed a loss of 5.02% over the previous month, beating the performance of the Auto-Tires-Trucks sector with its loss of 12.04% and underperforming the S&P 500's loss of 3.95%.
The upcoming earnings release of Cummins will be of great interest to investors. The company's earnings report is expected on November 2, 2023. The company's earnings per share (EPS) are projected to be $4.70, reflecting a 46.42% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $8.19 billion, up 11.74% from the prior-year quarter.
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.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Cummins. 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.6% decrease. Right now, Cummins possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Cummins currently has a Forward P/E ratio of 11.15. This expresses no noticeable deviation compared to the average Forward P/E of 11.15 of its industry.
Investors should also note that CMI has a PEG ratio of 1.08 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Automotive - Internal Combustion Engines industry currently had an average PEG ratio of 1.08 as of yesterday's close.
The Automotive - Internal Combustion Engines industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 101, which puts it in the top 41% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.