Cracking The Code: Understanding Analyst Reviews For Cummins

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6 analysts have shared their evaluations of Cummins CMI during the recent three months, expressing a mix of bullish and bearish perspectives.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 1 2 2 0
Last 30D 0 0 1 0 0
1M Ago 0 0 1 0 0
2M Ago 1 0 0 2 0
3M Ago 0 1 0 0 0

Analysts have recently evaluated Cummins and provided 12-month price targets. The average target is $263.33, accompanied by a high estimate of $303.00 and a low estimate of $225.00. This current average has increased by 5.97% from the previous average price target of $248.50.

Analyzing Analyst Ratings: A Detailed Breakdown

The perception of Cummins by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Jamie Cook Truist Securities Announces Hold $303.00 -
David Raso Evercore ISI Group Raises In-Line $244.00 $231.00
Timothy Thein Citigroup Raises Buy $285.00 $265.00
Ross Gilardi B of A Securities Lowers Underperform $225.00 $243.00
Tami Zakaria JP Morgan Lowers Underweight $245.00 $255.00
Angel Castillo Morgan Stanley Announces Overweight $278.00 -

Key Insights:

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  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Cummins. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Cummins compared to the broader market.
  • Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Cummins's stock. This comparison reveals trends in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Cummins's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Cummins analyst ratings.

Discovering Cummins: A Closer Look

Cummins is the top manufacturer of diesel engines used in commercial trucks, off-highway equipment, and railroad locomotives, in addition to standby and prime power generators. The company also sells powertrain components, which include transmissions, turbochargers, aftertreatment systems, and fuel systems. Cummins is in the unique position of competing with its primary customers, heavy-duty truck manufacturers, who make and aggressively market their own engines. Despite robust competition across all its segments and increasing government regulation of carbon emissions, Cummins has maintained its leadership position in the industry.

Key Indicators: Cummins's Financial Health

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: Cummins's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 9.95%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -16.75%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Cummins's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -14.67%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -4.46%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.81.

What Are Analyst Ratings?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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