For its first fiscal quarter (ending March 31), Cummins Inc. (NYSE: CMI) has reported a 153% increase in E.P.S. from $5.58 a year ago to $14.10 in the current quarter. This performance was $8.69 better than the consensus estimate of $5.41. For the latest four quarters through March 31, E.P.S. were $13.73 versus $17.85 for the same period a year ago — a decline of -23%.
Recent Price Action
Cummins Inc. (NYSE: CMI) stock declined modestly by -1.3% on 5/2/24. The stock closed at $280.29. However, this decline was accompanied by exceptionally low trading volume at 42% of normal. The stock has been strong relative to the market over the last nine months but has declined -4.1% during the last week.
Current PriceTarget Research Rating
CMI’s future returns on capital are forecasted to be above the cost of capital. Accordingly, the company is expected to continue to be a major Value Builder.
Cummins has a current Value Trend Rating of C (Neutral). The Value Trend Rating reflects contradictory signals from PTR’s two proprietary measures of a stock’s attractiveness. Cummins has a slightly negative Appreciation Score of 33 but a slightly positive Power Rating of 66, leading to the Neutral Value Trend Rating.
Rating Review
In light of this encouraging new earnings information we are reviewing our current Overall Rating of C. This review will be completed in the next several days.
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