Analyst Ratings for Cummins Inc. (CMI)

Updated: 2017-07-27

Analysts covering Cummins Inc. (NYSE:CMI) have given it a consensus rating of Hold. A consensus rating of Hold was previously issued for CMI last month.

Of the 23 analysts covering the stock, 7 gave it a buy rating, 0 gave an overweight rating, 13 gave a hold rating, 1 gave an underweight rating, and 2 issued a sell rating. Today, there are 0 more analysts optimistic about the company future as compared with 90 days ago. During this time, the number of analysts bearish on the stock has increased by 1.

CMI was given price targets by several analysts. The most optimistic price target was 200, implying a possible profit of 20.61 percent. The most pessimistic analyst gave a price target of 135, implying a possible loss of -18.59 percent. One must be careful with overanalyzing price targets and ratings due to possible conflicts of interest among the analysts releasing them.

In the last 30 days, analysts have changed their quarterly earnings estimates upwards by an average of 0.59 percent. That number becomes 16 percent if we expand the time horizon to include the past 3 months instead of just one. Over the past 30 days, FY earnings estimates have also changed upwards by 0.27 percent. Expanding the time horizon to 3 months, the average change in fiscal year estimates becomes 15.92 percent.

Investors like to see analysts making revisions in the same direction, as that raises confidence in the revisions. 2 analysts made positive revisions to their quarterly estimates over the past month, while 2 analysts made negative revisions. Also over the last month, 3 analysts increased their estimates for the FY earnings, while 2 analysts decreased their estimates.

The growth rate of CMI's earnings is estimated by analysts to be 7.7 percent. Another measure frequently examined by investors is the PEG ratio. Smaller PEG ratios are desirable, as that can indicate whether the high price level of a stock is warranted by high growth. People often look for the PEG ratio to be under 1, though it could be better to see where the ratio stands relative to peers in the industry. CMI has a PEG ratio of 2.47.

In the trailing 52-weeks, CMI hit 170.68 at the highest peak, while it's lowest trading point was 116.03. Today's price is 42.91 percent above the 52-week low, and 2.85 percent below the high. CMI has a price/earnings ratio of 19.03. Investors typically compare the P/E ratio to a company's peers in the industry. The CMI value stock report compares CMI to some of its peers using value stock charts. The stock has a market capitalization of $27.88 billion. CMI's next earnings release will be on 0000-00-00, which is days away.