CMI · NYSE · STOCK
Cummins (CMI) Stock Analysis
$523.32
52W $400.72 – $737.76
51/100
$72.22B
26.6
1.24
Is CMI Bullish or Bearish?
Mixed.
Innellis AI committee rates Cummins (CMI) Watch with a composite score of 51/100
, based on 5 analysts with 60% agreement.
Last updated October 10, 2026.
What Would Change This View
- Upgrade to Buy
- Requires a committee score of 60.0 — +9.17 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Reduce
- Requires the score to fall below 40.0 — -10.83 from today. The band boundary is 45.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. Macro Analyst sees a compelling case. Portfolio Manager remains cautious — sector concentration is already high (hhi 2796.97). This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- ROE of 21.9% shows genuine earnings power backing the valuation — Value
- Dividend yield of 3.0% pays you to wait — Value
- MACD histogram positive -- bullish momentum — Technical
Bear Case
- P/E of 26.4 is moderate-to-rich — Value
- Price-to-book of 5.7x prices in significant intangible value — Value
- EPS declining -8.0% YoY despite any revenue growth — Growth
- Growth rate is decelerating quarter over quarter -- the trend line matters more than the level — Growth
- Price structure making lower highs and lower lows — Technical
- Weekly RSI at 23 -- oversold on the larger timeframe too — Technical
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of October 10, 2026
Overall Committee Score
51/100
Agreement
60%
Analysts
5
Conviction
Moderate
Sector Rank
Top 88%
of 227 Industrials peers
Value Analyst
neutral
48
/ 100 · Moderate confidence
Fair value -- neither a bargain nor obviously overpriced
+ ROE of 21.9% shows genuine earnings power backing the valuation
− P/E of 26.4 is moderate-to-rich
Growth Analyst
bearish
32
/ 100 · High confidence
Growth story is weak, decelerating, or inconsistent
− EPS declining -8.0% YoY despite any revenue growth
Technical Analyst
neutral
52
/ 100 · High confidence
Mixed or range-bound price action
+ MACD histogram positive -- bullish momentum
− Price structure making lower highs and lower lows
Macro Analyst
bullish
65
/ 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst
neutral
58
/ 100 · Low confidence
News flow is mixed or quiet -- no strong signal either way right now
Portfolio Manager
bearish
30
/ 100 · Moderate confidence
The existing book itself argues for caution here, independent of how good this specific stock looks
− Sector concentration is already high (HHI 2796.97)
Investment Thesis Evolution
Committee score moved marginally from 50.8 to 50.8.
- New bearish signals: 2 appeared.
- Bearish pressure eased: 2 signal(s) disappeared.
Analyst-level changes:
- Technical Analyst: +1 bearish signal(s).
- Value Analyst: +1 bearish signal(s).
Comparing 2026-10-09 to 2026-10-10 (1 day apart).
Technical Analysis
RSI (14)
47.0
Neutral
MACD Histogram
3.100
Bullish Momentum
Trend Direction
Downtrend
Weekly: Sideways
Market Structure
Mixed
Support
$510.06
Resistance
$617.95
Bollinger %B
0.42
Inside Bands
Price vs Moving Averages
EMA 9
$523.53
Below
EMA 21
$531.98
Below
EMA 50
$562.39
Below
EMA 200
$575.08
Below
Fundamental Analysis
Valuation
63
Growth
48
Profitability
59
Financial Health
85
Cash Flow
70
Valuation
P/E Ratio
26.6×
P/B Ratio
5.63×
PEG Ratio
-3.27
Dividend Yield
1.57%
52W High
$737.76
52W Low
$400.72
Quality & Growth
ROE
2302.2%
ROA
836.4%
Gross Margin
2532.0%
Operating Margin
1113.0%
Revenue Growth YoY
—
Debt / Equity
0.65
AI Fundamental Assessment
P/E ratio of 26.6 (moderate relative to a 15-40x range); Price-to-book of 5.6x; PEG ratio of -3.3 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 23.0%; Return on assets of 8.4%; Net margin of 7.8%; Gross margin of 25.3%; Current ratio of 1.73 (healthy short-term liquidity); Debt-to-equity of 0.64; Free cash flow per share is positive (24.38); Most recent quarter missed estimates by 7.9%; EPS growth decelerating (+44.0% -> +9.4% QoQ); Average YoY EPS growth of 4.7%; Analyst estimates rising over recent quarters
Get the Full CMI Analysis
Interactive charts · Live committee votes · Trade plan · Paper trading · AI Q&A
Open in Terminal →