Cummins (CMI) is at a 52-week high, but can investors hope for more gains in the future? We take a look at the company's fundamentals for clues.
Have you been paying attention to shares of Cummins $CMI (CMI)? Shares have been on the move with the stock up 16.1% over the past month. The stock hit a new 52-week high of $636.67 in the previous session. Cummins has gained 24.7% since the start of the year compared to the -7.1% gain for the Zacks Auto-Tires-Trucks sector and the 25% return for the Zacks Automotive - Internal Combustion Engines industry.
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 5, 2026, Cummins reported EPS of $5.81 versus consensus estimate of $5.2.
For the current fiscal year, Cummins is expected to post earnings of $26.03 per share on $35.55 in revenues. This represents a 9.46% change in EPS on a 5.59% change in revenues. For the next fiscal year, the company is expected to earn $30.43 per share on $37.94 in revenues. This represents a year-over-year change of 16.89% and 6.72%, respectively.
Cummins may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Cummins has a Value Score of C. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 24.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 24.5X. On a trailing cash flow basis, the stock currently trades at 19.9X versus its peer group's average of 17.5X. Additionally, the stock has a PEG ratio of 2.01. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Cummins currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Cummins passes the test. Thus, it seems as though Cummins shares could have a bit more room to run in the near term.
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