Why Cummins Stock Jumped on Tuesday
Shrugging off Monday weakness, Cummins (NYSE: CMI) stock rebounded this morning and was trading 4.7% higher as of noon ET Tuesday.
The industrial giant posted fourth-quarter and full-year earnings results today. While revenue beat analysts' estimates, its earnings fell short of expectations. Worse yet, Cummins expects its revenue to decline in 2025. Yet something about its outlook has caught investors' attention.
Cummins' revenue fell 1% year over year to $8.4 billion in the fourth quarter. Yet, the company's bottom line swung sharply to a net profit of $418 million from a loss of $1.4 billion in the year-ago quarter. Of course, Q4 2023 was an exceptionally challenging quarter as Cummins paid a hefty fine to settle a $2 billion lawsuit for installing illegal devices that bypassed emissions tests.
Source Fool.com
Cummins Inc. Stock
With 20 Buy predictions and only 1 Sell predictions the community sentiment for the stock is positive.
On the other hand, the target price of 433 € is below the current price of 434.7 € for Cummins Inc., so the potential is actually -0.39%.
