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Cummins Inc. (CMI), with a market cap of $40.1 billion, is the engine powerhouse that keeps industries running smoothly. This Columbus, Indiana-based company designs and builds everything from diesel and natural gas engines to powertrain components like turbochargers and transmissions.
Cummins is more than just an engine maker – it is a global force, fueling OEMs, distributors, and dealers through a vast network of facilities. Cummins has mastered the art of power and innovation, ensuring everything from trucks to industrial equipment moves forward with relentless energy and precision.
Companies worth $10 billion or more are generally considered "large-cap" stocks, and Cummins cruised comfortably in that lane. This engine giant embodies the essence of stability and influence in the sector. From its roots as a modest engine manufacturer, Cummins has shifted gears to dominate the industrial world, showcasing not just size but also consistent performance and innovation.
Despite its notable strengths, this diesel and natural gas engine manufacturer has dipped 8.1% from its 52-week high of $322.83, which it hit on Aug. 1. Shares of CMI are up 9.1% over the past three months, outperforming the S&P 500 Industrial Sector SPDR’s (XLI) 4.5% return over the same time frame.
Over the longer term, CMI shares have risen 26.4% over the past year, and in 2024, the stock is up 23.9%. By contrast, XLI is up 12.1% on a YTD basis and 21% over the past 52 weeks.
The stock has been trading above its 50-day moving average since mid-July and above its 200-day moving average since January.
Cummins has been riding a wave of solid price action fueled by strong demand and a forward-thinking approach to innovation.
On Aug. 1, CMI stock surged 4.9% after delivering impressive Q2 earnings results. The Power Systems segment was a standout, driving record sales and profitability. It posted a profit of $726 million, or $5.26 per share, beating Wall Street’s $4.85 per share forecast. Revenue also came in at $8.8 billion, well above the expected $8.28 billion. With its strong market presence and innovation, Cummins is powering ahead, leaving its mark on the industry.
Cummins has been powering ahead, leaving its rival Caterpillar Inc. (CAT) behind. Over the past 52 weeks, CAT surged 18.3% over the past 52 weeks, underperforming CMI. Not only did it outperform CAT over the year, but Cummins also outshined its competitor on a YTD basis, delivering stronger returns than CAT’s 13% rise.
Analysts are cautious about CMI’s prospects. The stock has a consensus rating of “Hold” from the 15 analysts covering it, but the mean price target of $317.38 is a 6.9% premium from current levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
