Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Cummins Revving Up For The Next Truck Cycle

There's no doubting now that the operating environment for the North American Class 8 truck industry is getting better, and Cummins (NYSE:CMI) stands to be a major beneficiary. European and Chinese truck markets are also looking stronger, helping to offset weakness in other areas like Brazilian trucks and power generation. Cummins shares are already up about 28% over the past year, and BorgWarner (NYSE:BWA) and Dana (NYSE:DAN) may offer a little extra relative performance, but I wouldn't rush to take profits just yet.

Strong Earnings To Start The Year

With North American Class 8 orders up 51%, 30%, and 24% for the first three months of the year, it seemed reasonable enough to expect...

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