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Surging Earnings Estimates Signal Good News for Cummins (CMI)

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Cummins, Inc. (CMI - Free Report) is a leading manufacturer and distributer of diesel and natural gas engines that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on CMI’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Cummins could be a solid choice for investors.

Current Quarter Estimates for CMI

In the past 30 days, eight estimates have gone higher for Cummins while one has gone lower in the same time period. The trend has been pretty favorable too, with estimates increasing from $2.24 a share 30 days ago, to $2.53 today, a move of 12.9%.

Current Year Estimates for CMI

Meanwhile, Cummins’s current year figures are also looking quite promising, with 11 estimates moving higher in the past month, compared to none lower. The consensus estimate trend has also seen a boost for this time frame, increasing from $8.11 per share 30 days ago to $9.27 per share today, an increase of 14.3%.

Cummins Inc. Price and Consensus

Cummins Inc. Price and Consensus | Cummins Inc. Quote

Bottom Line

The stock has also started to move higher lately, adding 8.6% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So investors may definitely want to consider this Zacks Rank #1 (Strong Buy) stock to profit in the near future. You can see the complete list of today’s Zacks #1 Rank stocks here.

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