Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even ...

Shares of Cummins (CMI) have been strong performers lately, with the stock up 9.3% over the past month. The stock hit a new 52-week high of $547.43 in the previous session. Cummins has gained 7.1% since the start of the year compared to the 10.6% move for the Zacks Auto-Tires-Trucks sector and the 57.9% return for the Zacks Automotive - Internal Combustion Engines industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consens ...

Group 1: Company Overview - Atmus Filtration Technologies (ATMU) is a notable stock in the Auto-Tires-Trucks sector, which consists of 99 individual stocks [2] - The company currently holds a Zacks Rank of 2 (Buy), indicating a favorable outlook based on earnings estimate revisions [3] Group 2: Performance Metrics - Over the past year, Atmus Filtration Technologies has gained approximately 36.7%, significantly outperforming the average gain of 17.8% in the Auto-Tires-Trucks group [4] - The Zacks Consensus Estimate for ATMU's full-year earnings has increased by 2.6% over the last 90 days, reflecting improved analyst sentiment [4] Group 3: Industry Context - Atmus Filtration Technologies is part of the Automotive - Original Equipment industry, which includes 51 companies and is currently ranked 76 in the Zacks Industry Rank [6] - In contrast, Cummins (CMI), another stock in the Auto-Tires-Trucks sector, has seen a year-to-date increase of 45.4% and belongs to the Automotive - Internal Combustion Engines industry, ranked 7 [5][7]

Core Insights - Cummins reported quarterly earnings of $5.59 per share, exceeding the Zacks Consensus Estimate of $4.73 per share, and showing a slight decrease from $5.6 per share a year ago, resulting in an earnings surprise of +18.18% [1] - The company achieved revenues of $8.32 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.24%, although this represents a decline from year-ago revenues of $8.46 billion [2] - Cummins has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The future performance of Cummins' stock will largely depend on management's commentary during the earnings call and the revisions of earnings estimates [3][4] - The current consensus EPS estimate for the upcoming quarter is $4.72 on revenues of $8.2 billion, while for the current fiscal year, the estimate is $21.59 on revenues of $33.07 billion [7] Industry Context - Cummins operates within the Zacks Automotive - Internal Combustion Engines industry, which is currently ranked in the top 41% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Historical data suggests that stocks in the top 50% of Zacks-ranked industries outperform those in the bottom 50% by more than 2 to 1 [8]

Financial Performance - Cummins reported quarterly earnings of $6.43 per share, exceeding the Zacks Consensus Estimate of $4.99 per share, and up from $5.26 per share a year ago, representing an earnings surprise of +28.86% [1] - The company posted revenues of $8.64 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.99%, although this is a decrease from year-ago revenues of $8.8 billion [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $4.85 on revenues of $8.23 billion, and for the current fiscal year, it is $20.66 on revenues of $33.23 billion [7] - The estimate revisions trend for Cummins was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - Cummins operates within the Zacks Automotive - Internal Combustion Engines industry, which is currently in the top 41% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Group 1 - Cummins reported quarterly earnings of $5.96 per share, exceeding the Zacks Consensus Estimate of $4.82 per share, and up from $5.10 per share a year ago, representing an earnings surprise of 23.65% [1][2] - The company achieved revenues of $8.17 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.33%, although this is a decrease from year-ago revenues of $8.4 billion [2] - Cummins has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2][6] Group 2 - The stock has underperformed the market, losing about 14% since the beginning of the year compared to the S&P 500's decline of 3.3% [3] - The current consensus EPS estimate for the upcoming quarter is $5.28 on revenues of $8.54 billion, and for the current fiscal year, it is $20.77 on revenues of $33.53 billion [7] - The Zacks Industry Rank for Automotive - Internal Combustion Engines is in the top 39% of over 250 Zacks industries, suggesting a favorable industry outlook [8]