Cummins stock: buy or sell?

CMI stock price: $167.46 0.20% At close on February 21st, 2020

Updated on:
February 21st, 2020

3

Cummins shares stayed steady 0.20% to $167.46 on February/21. With Feb 21st, it's been 3 green sessions in a row, adding $2.70 or 1.63%.

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

Should I buy Cummins stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. That's why is so important to define your own trading strategy that matches with your character as inversor. 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?

Financial institutions and banks publish stock ratings everyday. Unfortunately, we couldn't detect any rating for CMI stock for the last month.

Cummins stock analysis

Daily outlook

Shares of Cummins stayed stable a tiny 0.20% and closed at $167.46.

Shares of Cummins stayed stable a tiny 0.20% and closed at $167.46. On February/12 CMI price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. From a daily perspective, CMI is in a short term uptrend after plotting its last bottom ($163.10, on Tuesday) higher than the previous bottom, and its last top ($169.71, on Thursday) also over the previous top. Now trading in between its last bottom and last top CMI might consolidate in a plain range, waiting to break out over $169.71 or down under $163.10. On December, CMI hit new all time highs, pushing higher previous ATH of $184.19 recorded on December. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

CMI stock chart (daily)

Weekly outlook

Shares of Cummins appreciated a slightly good 1.20% this week. With this, it's been 3 climbing weeks in a row, soaring a 5.21%. Late January CMI collapsed a chilling -5.74% in just one week.

Price pattern shows an uptrend with two rising tops and bottoms, and now trading upwards to the $184.41 resistance. Not so far away is the last all-time high Cummins marked early December. Last week CMI price bounced up over the SMA of 40 weeks that acted as support stopping new slides.

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

How much a stock will be priced tomorrow or next week is quite unpredictable However, many stock price predictions are published every day by banks, financial institutions and independent analysts. 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 month we have not detected any price target for Cummins stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

, Cummins failed to meet the estimates of the analysts and reported a rough EPS of $3.48 per share when experts were expecting $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

Compared to 2017, last anual turnover report draw an astounding increase of 16.36% to $23,771.00 M dollars. Nonetheless, its income margin (compared to sales) gained to 9.01%, that is $2,141.00 million.

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 million in sales 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 decreased a -2.19% compared to previous quarter when profit margin was 11.64%. When comparing sales to same quarter last year, Cummins sales marked a cool gain and boosted 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 shares of a company, it's worth to check its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Cummins, 0.32% of all outstanding shares are owned by its staff.

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

For a better context understanding, the following table shows ownership data compared to other related companies:

CMI
Market cap$25.2 B
Total shares150.7 M
Float shares149.7 M
  - Institutional holdings (%)85.2%
  - Insider holdings (%)0.3%
Shares in short selling0.0%

Cummins summary

Friday, February 21st, 2020
Open$165.96
Close$167.46
Day range$163.56 - $167.53
Previous close$167.12
Session gain0.20%
Average true range$4.03
50d mov avg$171.21
100d mov avg$171.64
200d mov avg$164.57
Daily patternlt06a
Weekly pattern lb02a

Cummins performance

To measure stock performance is always good to benchmark with competitors or related stocks. In the following table, we compare Cummins performance to :
Stock3m6m12m
CMICummins-6.31%19.69%11.11%

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