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 Cummins ( CMI) as a new lifetime high 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 $301.4 million.
- CMI has traded 4,041 shares today.
- CMI is trading at a new lifetime high.
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 1.8%. CMI has a PE ratio of 17.7. Currently there are 10 analysts that rate Cummins a buy, no analysts rate it a sell, and 4 rate it a hold. The average volume for Cummins has been 1.5 million shares per day over the past 30 days. Cummins has a market cap of $26.1 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.76 and a short float of 1.4% with 1.21 days to cover. Shares are down 0.7% year-to-date as of the close of trading on Thursday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Cummins as a buy. 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, solid stock price performance, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 17.6%. Since the same quarter one year prior, revenues slightly increased by 6.8%. 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 0.23 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, CMI has a quick ratio of 1.68, which demonstrates the ability of the company to cover short-term liquidity needs.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. 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.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Machinery industry average. The net income increased by 17.1% when compared to the same quarter one year prior, going from $369.00 million to $432.00 million.
- Net operating cash flow has slightly increased to $756.00 million or 1.47% when compared to the same quarter last year. Despite an increase in cash flow, CUMMINS INC's cash flow growth rate is still lower than the industry average growth rate of 24.56%.
- You can view the full Cummins Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.