Tuesday, January 1, 2013

Why Cummins Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, diesel engine manufacturer Cummins (NYSE: CMI  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Cummins and see what CAPS investors are saying about the stock right now.

Cummins facts

Headquarters (Founded)

Columbus, Ind. (1919)

Market Cap

$20.5 billion

Industry

Diversified machinery

Trailing-12-Month Revenue

$18.0 billion

Management

Chairman/CEO Thomas Linebarger
CFO Patrick Ward

Return on Equity (Average, Past 3 Years)

30.4%

Cash/Debt

$1.3 billion / $801.0 million

Dividend Yield

1.9%

Competitors

Caterpillar (NYSE: CAT  )
Detroit Diesel
Navistar International (NYSE: NAV  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 1,622 members who have rated Cummins believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, macattk, succinctly summed up the Cummins bull case for our community: "Strong product line, company has good fundamentals -- strong cash flows, solid balance sheet and is positioned to benefit from next generation of engines and recovery of global economy over next several years."

If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Cummins may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

No comments:

Post a Comment