Cummins (CMI - Get Report) is another name that's been somewhat battered by recessionary headwinds. Not surprisingly, the $21 billion engine manufacturer has enormous exposure to the still-recovering auto industry as well as industrial spending trends. That positioning led to a significant contraction in revenues in fiscal 2009 and 2010.
But those numbers don't tell the whole story about Cummins right now. While 2010 revenues were still below the sales numbers the firm posted in 2008, net income was actually higher last year thanks to improved cost management.Ultimately, Cummins looks like one of the handful of large-cap names that's emerging from the recession with materially more attractive operations than it had before. The company's powerful brand should keep significant customers around, and a push toward increasing international engine sales should increase top-line growth in 2011 and 2012. Cummins' management team announced a 52.38% dividend hike last week, bringing the firm's quarterly shareholder check to 40 cents per share. Investors should keep their eyes on this company's July 26 second quarter earnings call. Cummins shows up on recent lists of 3 Funds' Best Stock Picks Ahead of Earnings and Stocks Poised for a Second-Half 2011 Rebound.