Cummins -- CMI has new contracts in China, India and Brasil
Financial Tides picks Cummins Inc. (CMI) one of the leading worldwide designers and manufacturers of diesel engines. The company also produces natural gas engines and engine components and subsystems. Cummins provides power and components for a wide variety of equipment in its key businesses: engine, power generation, and filtration.
Recent changes in emissions regulations at the EPA have given the company's new high efficiency engines a sales advantage. New sales agreements in Brazil, China and especially with Tata in India will give the company an opportunity for new sales growth for at least the next 5 years.
Technical indicators from Barchart:
1 - 100% Barchart technical buy signal
2 - New highs in 11 of the last 20 trading sessions plus 4 in the recent 5
3 - 17.91% price appreciation in the last 30 days
4 - Trades around 73.53 with a 50 day moving average of 62.42
Increased sales and earnings predicted:
1 - Analysts have released 10 buy and 7 hold recommendations
2 - Sales predicted to increase 4.80% this year and 18.70% next year
3 - Earnings forecasted to increase 2.40% this year, 64.70% next year and continue with a 5 year annual compounded rate of EPS growth of 12% per year
Very high investor sentiment:
1 - Motley Fool CAPS members think the stock will out perform the market by a vote of 914 to 51
2 - The All Stars agree with a vote of 233 to 8
The stock meets all of my investment criteria:
1 - Recent and consistent upward price momentum
2 - 100% Barchart technical buy signal
3 - Positive press and investor sentiment
4 - Wall Street predicting increased sales and earnings.
Jim Van Meerten is an investor who writes on financial matters here and on Financial Tides. Please leave a comment below or email JimVanMeerten@gmail.com.
Disclosure: no positions in CMI at the time of publication