Cummins Inc. (CMI) Hit a 52 Week High, Can the Run Continue?

Core Viewpoint - Cummins has shown strong stock performance, with a 9.3% increase over the past month and a new 52-week high of $547.43, outperforming the broader auto sector and the internal combustion engines industry [1][2]. Financial Performance - Cummins has a solid track record of positive earnings surprises, having beaten earnings consensus estimates in the last four quarters. In the latest earnings report, EPS was $5.59 compared to a consensus estimate of $4.73, with revenue exceeding estimates by 3.24% [2]. - For the current fiscal year, earnings are projected at $26.04 per share on revenues of $33.3 billion, with a year-over-year earnings growth of 12.64%. For the next fiscal year, earnings are expected to rise to $29.86 per share on revenues of $35.21 billion, reflecting a growth of 5.74% [3]. Valuation Metrics - Cummins currently trades at 21 times the current fiscal year EPS estimates, aligning with the peer industry average. On a trailing cash flow basis, it trades at 18.6 times, compared to the peer group's average of 20.4 times. The stock has a PEG ratio of 1.91, indicating it is not among the top value stocks [7]. Zacks Rank and Style Scores - Cummins holds a Zacks Rank of 2 (Buy), supported by a positive earnings estimate revision trend. The company has a Value Score of B, a Growth Score of C, and a Momentum Score of A, resulting in a combined VGM Score of B. This suggests that Cummins shares may have further upside potential in the near term [6][8].