CMI Stock Analysis — Cummins
Sector: Industrials
AI Verdict
Cummins trades at 19.7x next year's earnings with a massive 65.1% EPS growth forecast, so the numbers look cheap for the growth on offer if its entrenched OEM relationships and service network keep competitors at bay.
Competitive Moat
Cummins dominates in heavy-duty engines and power solutions, with a global service network that creates high switching costs for fleet operators. Its scale and decades of diesel and hybrid expertise make it a go-to supplier for OEMs transitioning to cleaner technologies.
Summary
Earnings are expected to jump 65.1% next year, driving a sharp drop in valuation multiples.
Where It Stands
The stock is up 56.80% over the past year, trades at 19.7x forward earnings (below the industrials median of 20x), and its RSI of 41.0 signals cooling momentum after a strong run.
Key Metrics
- RSI: 41 — Neutral
- Trailing P/E: 32.6x
- Forward P/E: 19.7x
- PEG Ratio: 0.51
- Earnings Growth: +0.7%
- Revenue Growth: +0.0%
- Market Cap: $87.8B
- Dividend Yield: 0.01%
- 1-Year Return: 56.80%
- 52-Week High: $737.76
- 52-Week Low: $388.36
Analyst Consensus
18 Buy · 9 Hold · 0 Sell (27 analysts)
Bull Case
With forward EPS growth forecast at 65.1% and a forward P/E of 19.7x, you're paying a below-average multiple for a huge earnings jump.
Bear Case
If the forward P/E reverts to the sector median of 20x but earnings growth disappoints, the 32.6x trailing P/E could compress sharply and erase much of the recent 56.80% gain.
Catalyst to Watch
Watch for quarterly earnings — if Cummins delivers on the 65.1% EPS growth, the lower forward P/E could quickly look cheap.