Cummins stock: buy or sell
Jan 16th, 2021
Cummins stock brief
- After marking all-time highs on Thursday, Cummins closed at $237.24 going down a -1.69%
- From the chart point view, price is drawing a scaled uptrend since March 2020 with higher tops and higher bottoms. This rally marked a 139.61% gain
- With the recent gains, Cummins is approaching to new all-time highs again, that are now just 2.77% above the current price
- Jefferies Financial Group published a neutral rating for Cummins on Friday, with a target of $250.00
- Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, 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 pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $CMI stock a buy?
In the current situation of Cummins there is just one buy setup eligible:
Uptrend buy setup
Cummins stock is in an uptrend since in March 2020 that so far marked an amazing 140.00% gain. Price marked a pull back in this uptrend at $216.41 in mid-December, and since then it bounced off a 9.63%. Now, it's just 2.54% away from breaking out above its last top and resume the uptrend. The new entry point is therefore at $243.26. If you decide to enter this trade, the suggested stop loss is at $218.93
|Buy setup||Buy point||Stop loss||Risk|
|Uptrend buy setup||$243.26||$218.93||10.00%|
Should I sell Cummins stock?
When you own stock shares with some profit, it's really hard to decide the best moment to sell and get your benefits. Like when we have to buy shares, determining when is appropiate time to sell is not a haphazard decision, and we must use our own trading strategy. Our trading system selects very simple strategies to guide us on when is the best time to sell a stock. Be aware that these strategies are not intended for selling short Cummins stock
As a golden rule, you should not mantain a trade that produces losses greater than those expected upon purchase. The timing to sell shares should always be ruled by the stop-loss (automatic or manual)
Is it time to sell Cummins stock?
Currently, Cummins stock doesn't match any of our preferred sell setups, so if you hold Cummins shares and your operation is in profit probably is not time to sell now
In the last 30 days, 2 ratings were published for Cummins
|Dec 24th, 2020|
|Cowen||Neutral → Neutral|
|Jan 15th, 2021|
|Jefferies Financial Group||Neutral|
Cummins stock analysis
Cummins shares started an uptrend in March 2020, and grew an amazing 139.61%. The price line shows higher peaks and higher troughs, and along the way gave some buying opportunities for those who wanted to invest. Latest low was in mid-December, when price bounced at $216.41. Like in all uptrends, price needs to rest and currently price is consolidating the gains in a range between $243.26 and $216.41
$CMI at new Highs
Cummins reached new all-time highs (ATH) on Thursday at $244.00, and cleared the field for new highs as there are no further resistances. Previous ATHs were last November
Supports and resistances
The current resistance levels are:
The current supports are:
Since the price surpassed the upper band last Wednesday, the price corrected downwards by 2.43%. The price is moving near to the upper Bollinger band, indicating some level of overbought in recent sessions. This is not a bearish indicator, as price can trade in these levels for many days and weeks
Relative strength index
The has been between the the levels of 30 and 70 for some weeks, and therefore, without this indicator really being helpful in making any decisions.
Cummins stock price history
Cummins started trading on Feb 21st, 1973 at $0.00 per share1. Since then, CMI stock has risen by -, with an average of 0.00% per year. If you had invested $1,000USD in Cummins stock at that time, it would have a value of $inf today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Cummins stock
How much a stock will be priced tomorrow or next week is quite unpredictable. Banks and financial organisations post their analysis forecasting how a stock will performance in the future.
Along with buy or sell recommendations, brokerage institutions post their price target based on the stock price action and the company fundamental data. Most of these forecasts follow the publication of new financial information by the company, and many times. Again, these forecasts are not direct recommendations for small traders and must not be trusted blindly.
There is just one price target available for Cummins that predicts a price of $250.00.
|Brokerage firm||Price target|
|Dec 24th, 2020|
|Jan 15th, 2021|
|Jefferies Financial Group||$235.00 → $250.00|
Earnings and financials
Shareholders event was hosted by Cummins ($CMI) last October after presenting the financial report. Cummins topped analysts estimates and posted of $3.36, that is a 42.98% improvement versus the forecasts of $2.35. In addition, reported revenues were $5.1 billion versus estimates of $4.5 billion.Same quarter last year, reported EPS was $3.83, so recently posted EPS means a decrease of -12.27%. Looking at sales, figures went down a -11.27% compared to $57.7B same quarter a year ago.
Cummins ($CMI) presents quarterly financial report early next February. Expected for this quarter is $2.77, compared to $3.36 that was reported for Q3.
Cummins is classified inside the Specialty Industrial Machinery industry, where it has industry peers.
Cummins most relevant competitors are:
|Company||Market cap||Rating||Bullish ratings1|
|General Electric ($GE)||$102.3B||Neutral||0|
|CNH Industrial (CNHI)||$18.3B||Neutral||0|
|Regal Beloit (RBC)||$5.0B||Neutral||0|
|Navistar International (NAV)||$4.4B||Neutral||0|
|Westport Fuel Systems (WPRT)||$977.4M||Neutral||0|
1 In the last 30 days.
To better understand Cummins stock performance you must compare its gains with other related stocks in same sector or industry.. For Cummins, the benchmark is made against Caterpillar, General Electric, PACCAR, CNH Industrial, BorgWarner, Regal Beloit, Navistar International and Westport Fuel Systems.
|General Electric ($GE)||6.60%||74.30%||65.60%|
|CNH Industrial (CNHI)||21.20%||69.20%||87.40%|
|Regal Beloit (RBC)||17.90%||40.00%||49.20%|
|Navistar International (NAV)||-0.70%||2.40%||44.70%|
|Westport Fuel Systems (WPRT)||60.00%||234.80%||402.20%|
Important note:The thoughts expressed in this article are personal and not recommendations for you to buy or sell stocks. The author of this report does not have an understanding of the specific conditions of the reader, his or her own finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are posted for general educational reasons only
|Friday, January 15th, 2021|
|Day range||$233.28 - $239.31|
|Average true range||$7.82|
|50d mov avg||$228.06|
|100d mov avg||$220.48|
|200d mov avg||$195.23|
|Earnings date||February 2nd, 2021|