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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Cummins (CMI)
Cummins Inc. is a leading global designer, manufacturer and distributor of diesel and natural gas engines and powertrain-related component products. Powertrain components include fuel systems, turbochargers, transmissions, batteries and electrified power systems, among others. Headquartered in Columbus, IN, the company offers products to original equipment manufacturers (OEMs), distributors and dealers through a network of roughly 600 company-owned and independent distributor facilities in over 9,000 dealer locations in more than 190 countries and territories.
CMI is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 16.4X for the current fiscal year compared to the Automotive - Internal Combustion Engines industry's P/E of 16.4X. Additionally, CMI has a PEG Ratio of 1.7 and a Price/Cash Flow ratio of 13.5X. Value investors should also note CMI's Price/Sales ratio of 1.5X.
Many value investors pay close attention to a company's earnings as well. For CMI, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $1.44 to $22.12 per share for 2024. Per share CMI boasts an average earnings surprise of 4.2%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding CMI to their portfolios.
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Cummins Inc. (CMI) : Free Stock Analysis Report