Cummins Inc. (CMI) Curr R Boosts as short-term debt falls

Current earnings to Price at 13.87% indicate that board is in line in terms of growth rate above PE 16.8. Cummins Inc. PB 3.61 is considered to be a huge plus with strong fundamentals ..

With firms  stress on Qtr in and Qtr , shares continue reflecting on optimism stock hit at -9.03% below 52 week high . As the assets near yearly high high traders may show increased interest as price nears either the high or the lows.

Strong uptrend & the core fundamentals continue to support sustainable growth for the company at 5.00% EPS, by next year rating firms expect Cummins Inc. EPS growth could slow down by as much as 13.53%.

Cummins Inc. low liquidity ratio has been a concern to the board indicating low value in curr r , additionally Cummins Inc. liquidity stands lower 1.0% Quick R. Cummins Inc. P /E ratio using its expected earnings stands at 14.23x and firms predicted earnings per share indicates that growth is on track .

Company forward growth are set to come in lower than anticipated , that said Cummins Inc. current asset price is 14.23X over its predicted earnings per share. Company continue to have strong support at $160.12, which is a long range sign of index direction.

Industrials sector is staging a rebound at 6856.71 points, comparatively to the broader index, has seen a change of 0.05 The Industrials rally further compounded as the money flow clocked 4.70x with down tick of $4515.52mn resulting in non-yielding $4008.36mn up ticks. With respect to block trades, money flow ended $-453.04mn with tick up at $762.89mn and tick down at $1215.93mn led an up /down ratio of 0.63x.

CMI has been utilizing higher financial leverage to finance debt and equity capital resulting in a high ROE above its competition . With RSI at 46.7 stocks might start to show relative strength again gradually .

Currently firm earns ROA of 10.20% in terms of gain, and is slightly above for the Industrial Goods sector . The company has above average liquidity position in terms of both the Current Ratio and the QR , which are currently at manageable levels of 1.6x .

End of the day trading on Wednesday, Dec 06 market cap stood at $27502.69 Millions . We believe prices cannot be sustained with out substantial push and Cummins Inc. is expected to deliver high revenue and earnings growth, however this might be hard to come by with PEG at 1.21 .

Company stocks are thought of as growth oriented stocks with strong investors confidence and now stock price are over it’s current earnings per share, however with its Industrial Goods sector trailing twelve months PE 16.8 also compares favourably this might not be genuine buying opportunity .

The company now trades at relatively lower price at 165.38 as compared to the Industrial Goods sector average at PE 25.28 . The present market risk have caused rating review to changeCummins Inc. stock ratings has continued to stay lower at Neutral as Jerry Revich form Goldman Sachs fail to see any break out pattern. However company still looks like an attractive risk /reward tradeoffCummins Inc. stocks at 1.14 Beta exhibit lower interdependence with the stock market index, and at 1.14% swing rate asset is theoretically less strained than the underlying price .

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