Cummins Stock: No need to worry! ()

On March 3rd, 2023, 10:32 p.m., Cummins shares are listed on their home market in New York at a price of USD 252.87. The company belongs to the Construction & Farm Machinery & Heavy Trucks segment.

We analyzed Cummins’ prospects based on 8 major categories. The stock receives a partial rating for each category. In an overall view, the results lead to the classification as “Buy”, “Hold” or “Sell”.

1. Industry comparison Share price: Compared to the average annual performance of stocks from the same sector (“industry”), Cummins is more than 49 percent below with a return of 14.28 percent. The “machinery” sector achieved an average return of 58.76 percent over the past 12 months. Here, too, Cummins is significantly lower at 44.48 percent. The stock’s performance over the past year results in a “Sell” rating in this category.

2. Relative Strength Index: The Relative Strength Index (also Relative Strength Index, abbreviated RSI) is used in technical analysis to assess whether a stock is overbought or oversold. As a result, overbought stocks are more likely to see price setbacks in the short term, while oversold stocks are more likely to see price gains. For this point of analysis, we consider the 7-day and 25-day RSI for Cummins. First the RSI7: this is currently at 45.64 points, indicating that Cummins is neither overbought nor oversold. This gives the security a “Hold” rating for the 7-day RSI. The 25-day RSI is fluctuating less in comparison. Here, too, Cummins is neither overbought nor -sold (value: 44.69), so the stock also receives a “hold” rating for the RSI25. Together, this gives the Cummins security a “Hold” rating under this section.

3. Analyst rating: Out of a total of 5 analyst ratings from the last twelve months for the Cummins stock, 2 ratings are “Buy”, 3 are “Hold” and 0 are “Sell”. This means, on average, a “hold” rating for the security. In a second consideration, the classification of the analysts for the past month is also interesting. The following picture emerged: 1 buy, 2 hold, 0 sell. The most recent analyzes thus lead to an overall rating of “Hold”. An average of USD 261.8 is calculated from the price targets given. That means the stock could be up 3.53 percent from the last close ($252.87). The resulting recommendation is “Hold”. In summary, Cummins receives a “hold” rating from the analysts.