Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Cummins as such a stock due to the following factors:
- CMI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $239.5 million.
- CMI traded 18,820 shares today in the pre-market hours as of 8:29 AM.
- CMI is up 4.7% today from Friday's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in CMI with the Ticky from Trade-Ideas. See the FREE profile for CMI NOW at Trade-Ideas
More details on CMI:
Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, and engine-related component products. It operates in four segments: Engine, Components, Power Generation, and Distribution. The stock currently has a dividend yield of 2.4%. CMI has a PE ratio of 15.4. Currently there are 10 analysts that rate Cummins a buy, no analysts rate it a sell, and 7 rate it a hold.
The average volume for Cummins has been 1.7 million shares per day over the past 30 days. Cummins has a market cap of $25.1 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 2.02 and a short float of 2.8% with 2.84 days to cover. Shares are down 2.6% year-to-date as of the close of trading on Friday.
rates Cummins as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, growth in earnings per share and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- CMI's revenue growth has slightly outpaced the industry average of 2.0%. Since the same quarter one year prior, revenues slightly increased by 6.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- CMI's debt-to-equity ratio is very low at 0.22 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.46, which illustrates the ability to avoid short-term cash problems.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Machinery industry average. The net income increased by 7.7% when compared to the same quarter one year prior, going from $414.00 million to $446.00 million.
- CUMMINS INC has improved earnings per share by 10.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CUMMINS INC reported lower earnings of $7.91 versus $8.66 in the prior year. This year, the market expects an improvement in earnings ($9.00 versus $7.91).
- In its most recent trading session, CMI has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full Cummins Ratings Report.