Cummins stock: buy or sell?

CMI stock price: $132.89 1.92% At close on April 2nd, 2020

Updated on:
April 2nd, 2020

2

Shares of Cummins ended today at $132.89 and jumped a beatiful 1.92%. On March/26 CMI climbed an exceptional 5.33%.

Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, and engine-related component products worldwide.

Should I buy Cummins stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best time to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, Cummins stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Cummins stock a buy?

Banks and financial institutions post stock ratings everyday. Unfortunately, we couldn't find any rating for CMI stock for the last 30 days.

Cummins stock analysis

Daily outlook

Cummins jumped a beatiful 1.92% and closed at $132.89.

Shares of Cummins jumped a beatiful 1.92% and closed at $132.89. Since price and SMA200d lines crossed down on February/24, CMI fell $-34.57 per share (-20.64%). CMI is soaring again after a 8.03% correction from its last top on Mar 31st at $138.41. On December, CMI hit a new all time high, pushing higher than on December tops. Check different trading setups that use ATHs as triggers.

CMI stock chart (daily)

Weekly outlook

After boosting an exceptional 11.53% in a week last week, Cummins closed this week at $132.89 and appreciated a slightly good 0.93%. By mid March CMI plummed a hair-raising -17.48% in just one week.

Far behind is the all-time high Cummins hit early December and since then the price is -27.94% below that top. Since price and 40-weeks moving average lines crossed down late February, CMI fell $-34.57 per share (-20.64%). Stocks under the 200d moving average line are usually not recommended for average traders.

CMI stock chart (weekly)

Cummins stock price history

Cummins stock historical price chart

CMI stock reached all-time highs on December with a price of $184.41.

Cummins stock price target

Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last 30 days we have not found any price target for Cummins stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

Cummins let down experts when it reported an Earnings per Share (EPS) of $3.48 when the analysts' forecast was $3.82.
CMI earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a2.53n/a
2017-Q32017-10-312.462.7110.2%
2017-Q42018-02-062.673.0313.5%
2018-Q12018-05-012.913.313.4%
2018-Q22018-07-313.674.1412.8%
2018-Q32018-10-303.754.058.0%
2018-Q42019-02-063.823.48-8.9%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, Cummins annual turnover boosted a dazzling 16.36% to $23,771.00 million dollars from $20,428.00 marked in 2017. When comparing 2018 vs 2017, however, profit margin (that is, the net income divided by revenues) stepped up a 4.12% to 9.01%.

CMI annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$17,300 M-$1,480 M8.6%-
2014$19,221 M11.10%$1,651 M8.6%11.55%
2015$19,110 M-0.58%$1,399 M7.3%-15.26%
2016$17,509 M-8.38%$1,394 M8.0%-0.36%
2017$20,428 M16.67%$999 M4.9%-28.34%
2018$23,771 M16.36%$2,141 M9.0%114.31%

Quarterly financial results

Cummins posted $6,126.00 M in revenues for 2018-Q4, a 3.08% improvement compared to previous quarter. Reported quarter earnings marked $579.00 million with a profit margin of 9.45%. Profit margin declined a -2.19% compared to previous quarter when profit margin was 11.64%. When comparing revenues to same quarter last year, Cummins sales marked a great increase and skyrocketed a 11.87%.
CMI quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$5,080 M-$424 M8.3%-
2017-Q3$5,285 M4.04%$453 M8.6%6.84%
2017-Q4$5,476 M3.61%$-274 M-5.0%-160.49%
2018-Q1$5,570 M1.72%$325 M5.8%-218.61%
2018-Q2$6,132 M10.09%$545 M8.9%67.69%
2018-Q3$5,943 M-3.08%$692 M11.6%26.97%
2018-Q4$6,126 M3.08%$579 M9.5%-16.33%
2019-Q1$6,004 M-1.99%$663 M11.0%14.51%

Cummins ownership

When you are planning to invest in a stock, it's worth to overview its ownership structure.

Cummins shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.34% of all shares.

Bearish positions for CMI stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Cummins:

CMI
Market cap$20.0 B
Total shares150.7 M
Float shares149.6 M
  - Institutional holdings (%)85.0%
  - Insider holdings (%)0.3%
Shares in short selling0.0%

Cummins summary

Thursday, April 2nd, 2020
Open$128.89
Close$132.89
Day range$127.61 - $134.23
Previous close$130.39
Session gain1.92%
Average true range$10.77
50d mov avg$149.49
100d mov avg$163.74
200d mov avg$161.94
Daily patternlb01a
Weekly pattern lb06a

Cummins performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We selected as the bechmarking frame for Cummins stock.
Stock3m6m12m
CMICummins-24.25%-14.55%-16.06%

Cummins competitors

Unfortunately, we could not find any public company that could be defined as Cummins competitor. This doesn't mean Cummins does not have any competitor in the market, it's just we could not detected it.

    Latest Cummins stock news