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Cummins Inc. (CMI), headquartered in Columbus, Indiana, designs, manufactures, distributes, and services a broad portfolio of power solutions. Valued at $38.73 billion by market cap, the company’s products range from diesel and natural gas engines, electric and hybrid powertrains, and powertrain-related components, including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems, automated transmissions, electronic power generation systems, batteries, electrified power systems, hydrogen generation, and fuel cell products.
Companies worth $10 billion or more are generally described as “large-cap” stocks, and CMI perfectly fits into that category, signifying its substantial size, stability, and dominance in its industry.
The global power solutions leader has fallen 6.9% from its 52-week high of $304.25, which it hit on Apr. 11. Shares of CMI are down 3.8% over the past three months, underperforming the Dow Jones Industrials Average’s ($DOWI) marginal losses over the same time frame.
Longer term, CMI shares have risen 19.9% over the past year, and in 2024, the stock is up 17.2%. By contrast, DOWI is up 3.8% on a YTD basis and 16% over the past 52 weeks.
The stock has been trading below its 50-day moving average since mid-May but above its 200-day moving average since late January.
On May 2, CMI reported its Q1 results. Its adjusted EPS was $5.10, below the consensus estimate of $5.11. The company’s revenue was $8.40 billion, beating the Wall Street estimates of $8.36 billion. The stock closed down more than 1% on the day the results were released.
Rival Caterpillar Inc. (CAT) has outperformed CMI with 37.1% gains over the past 52 weeks. However, CMI’s gains on a YTD basis outshine CAT’s 9.9% returns over this period.
After its recent underperformance compared to DOWI, analysts are cautious about CMI’s prospects. The stock has a consensus rating of “Hold” from the 16 analysts covering it, but the mean price target of $298.20 is a 5.3% premium to current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
