Columbus, Indiana-based Cummins Inc. (CMI) is a global power technology company with a market cap of $45 billion. The company designs, manufactures, distributes, and services a broad portfolio of power solutions, including diesel, natural gas, hybrid, and electric engines. It also offers related technologies such as filtration, emission control systems, turbochargers, fuel systems, aftertreatment, and power generation equipment.

Companies worth $10 billion or more are typically classified as “large-cap stocks,” and Cummins fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the specialty industrial machinery industry. The company is widely recognized for its engineering excellence, strong brand reputation, and century-long expertise in power solutions. Its core strengths lie in its diversified product portfolio and its ability to serve multiple industries. Cummins is also a leader in emissions-reduction technologies, supported by robust R&D and a global service network.

This power technology company has dipped 15.7% from its 52-week high of $387.90, reached on Dec. 9, 2024. Shares of Cummins have declined 2.2% over the past three months, lagging behind the Nasdaq Composite’s ($NASX) 12.9% uptick during the same time frame.

Moreover, on a YTD basis, shares of CMI are down 6.2%, underperforming NASX’s 2.1% rise. Nonetheless, in the longer term, CMI has surged 19.7% over the past 52 weeks, outpacing NASX’s 14.7% gain over the same time frame. 

To confirm its bearish trend, Cummins has been trading below its 200-day moving average since mid-March. However, it has remained above its 50-day moving average since mid-May. 

On May 5, shares of Cummins rose marginally following its better-than-expected Q1 earnings release. The company delivered revenue of $8.2 billion, down 2.7% from the year-ago quarter, but 1.2% above Wall Street expectations. The revenue decline was primarily driven by weaker international demand, particularly in Latin America and the Asia-Pacific region. However, stronger sales in China and record performance in its power systems segment helped offset some of the negatives, contributing to the top-line beat. Meanwhile, its EPS of $5.96 declined 57.5% from the prior-year quarter but surpassed the consensus estimates by a notable margin of 23.7%.

CMI has outpaced its rival, Illinois Tool Works Inc.’s (ITW) 4% gain over the past 52 weeks. However, it has lagged behind ITW’s 1.8% fall on a YTD basis. 

Despite CMI’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 18 analysts covering it, and the mean price target of $344.29 suggests a 5.3% premium to its current price levels.