Cummins: Still Cheaply Priced

Jul. 12, 2023 5:39 PM ETCummins Inc. (CMI) StockCMI11 Comments
Felix Fung
1.62K Followers

Summary

  • Cummins presents a compelling investment opportunity as the US economy is performing much better than expected.
  • The spending of the construction industry continues to trend up, which should drive the demand for trucks and construction equipment.
  • Thanks to the favorable backdrop, the latest earnings demonstrated strong growth in both the top and the bottom line.
  • The current valuation is discounted compared to the historical average and other industrial companies such as Caterpillar.

Modern diesel engine for assembling of machinery in the workshop

Vladimir Zapletin/iStock via Getty Images

Investment Thesis

As the US stock market continues to rise, it is getting increasingly harder to find great companies trading at bargaining prices. Cummins (NYSE:CMI), despite trading near its 52-week high, is still a

This article was written by

1.62K Followers
Individual investor with four-year experience. I focus on long-term investing opportunities around companies with high-quality fundamentals or compelling turnaround potential. Currently studying business and economics at the University of New South Wales. Appreciate any feedback and comments.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About CMI Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on CMI

Related Stocks

SymbolLast Price% Chg
CMI
--