Cummins stock: buy or sell?

CMI stock price: $182.97 -0.27% At close on November 19th, 2019

Updated on:
November 19th, 2019

4

Cummins shares stayed constant -0.27% to $182.97 today.

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

Should I buy Cummins stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. That's why is so important to choose your own trading strategy that fits 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.

None of our preferred buy setups matches with Cummins stock situation right now, therefore this is not a suitable entry point.

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?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we detected 11 ratings published for CMI stock in the last 30 days.

Is CMI a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-7-31Morgan Stanleyn/aEqual Weight
2019-7-31Credit Suisse Groupn/aOutperform
2019-7-2Loop CapitalHoldSell
2019-7-16Standpoint ResearchBuyHold
2019-6-3Wells Fargo & Con/aMarket Perform
2019-5-1UBS GroupSellSell
2019-5-1Credit Suisse Groupn/aOutperform
2019-4-16CitigroupNeutralBuy
2019-2-7Robert W. BairdNeutralOutperform
2019-2-7OppenheimerOutperformMarket Perform
2019-2-7OppenheimerOutperformMarket Perform

Cummins stock analysis

Daily outlook

Cummins stayed steady a bad -0.27% and closed at $182.97.

Cummins shares stayed stable -0.27% to $182.97 today. On Oct/10 CMI price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. From a daily outlook perspective, CMI is drawing an uptrend of rising tops and rising bottoms. Since its last top on November 8th at $185.40, price slid and found support around $179.66. Breaking down under $179.66 would cancel the current uptrend and it might slide further to test lower supports. Note that $185.40 might act as a resistance line. If Cummins breakouts over $185.40 with average or higher volume, this would be a clear signal that the uptrend resumes. Since SMA50d and SMA100d crossed up on November/4, CMI price climbed $7.66 per share (4.37%). On November 8th, CMI hit new all time highs, pushing higher previous ATH of $183.21 recorded on Nov/7. 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 ended this week at $182.97 and depreciated an ugly -0.56%. Early November CMI skyrocketed a brilliant 5.21% in just one week.

Not so far away is the last all-time high Cummins marked early November. Cummins stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Since early September when CMI stock price broke up the SMA40w line, it gained $34.76 (23.45%). Since mid January when SMA20w and SMA40w crossed up, CMI price gained $47.60 per share (35.16%).

CMI stock chart (weekly)

Cummins stock price history

Cummins stock historical price chart

CMI stock reached all-time highs on Nov/8 with a price of $185.40.

Cummins stock price target is $167.90

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. You should not follow the analysts' CMI stock price predictions in the hope that they will be met as they may be wrong and not met. For the last month we found 7 price forecasts for CMI stock:
CMI stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-7-31Morgan StanleyLowers Target$167.00$162.00-3%
2019-7-31Credit Suisse GroupReiterates$198.00$203.002.5%
2019-7-2Loop CapitalDowngrades$168.00$145.00-13.7%
2019-6-3Wells Fargo & CoLowers Target$175.00$165.00-5.7%
2019-5-1UBS GroupRaises Target$130.00$135.003.8%
2019-5-1Credit Suisse GroupReiterates$165.00$198.0020%
2019-4-16CitigroupUpgradesn/a$167.00-
(in average)$167.20$167.900.0%
The price prediction for Cummins stock is $167.90, moving in a range between $203.00 and $135.00. In average, analysts' outlook on CMI price forecast is stable from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On February, Cummins didn't meet the expectations of the experts and posted a fateful 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

In 2018, Cummins annual turnover rocketed an amazing 16.36% to $23,771.00 M dollars from $20,428.00 marked in 2017. In contrast, its profit margin (compared to revenues) raised 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 reported $6,126.00 million in sales for 2018-Q4, a 3.08% up 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 turnover to same quarter last year, Cummins sales marked a cool growth 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 shares of a company, it's worth to overview its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Cummins, 0.27% of all outstanding shares are owned by its staff.

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:

CMIBGGBWACATCNHI
Market cap$28.0 B$258.7 M$9.0 B$79.1 B$14.7 B
Total shares153.2 M42.5 M206.5 M552.7 M1,350.0 M
Float shares152.3 M40.5 M204.8 M551.5 M972.0 M
  - Institutional holdings (%)84.5%91.6%94.3%68.6%42.0%
  - Insider holdings (%)0.3%4.9%0.6%0.2%26.9%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Cummins summary

Tuesday, November 19th, 2019
Open$184.26
Close$182.97
Day range$181.27 - $184.37
Previous close$183.46
Session gain-0.27%
Average true range$3.32
50d mov avg$168.28
100d mov avg$162.69
200d mov avg$159.87
Daily patternlb03a
Weekly pattern lt06a

Cummins performance

To measure stock performance is always good to compare with competitors or related stocks. For Cummins, the comparison is made against Briggs & Stratton, BorgWarner, Caterpillar, CNH Industrial, General Electric, Navistar International, PACCAR, Regal Beloit and Westport Fuel Systems.
Stock3m6m12m
CMICummins29.76%16.26%30.25%
BGGBriggs & Stratton49.63%-36.63%-57.77%
BWABorgWarner41.73%23.38%12.33%
CATCaterpillar26.47%18.28%20.33%
CNHICNH Industrial19.63%23.28%16.81%
GEGeneral Electric43.72%21.31%57.79%
NAVNavistar Internat...45.44%5.41%8.87%
PCARPACCAR27.54%18.62%39.52%
RBCRegal Beloit17.72%9.98%8.40%
WPRTWestport Fuel Sys...-0.38%3.94%28.16%

Cummins competitors

We selected a few stocks to conform a list of Cummins competitors to examine if you are interested in investing in CMI:

Latest Cummins stock news