CMI Stock Analysis: Buy, Sell, or Hold?
CMI - Cummins Inc.
$705.48
-19.45 (-2.68%)
▼
5d:
+3.79%
30d:
+10.44%
90d:
+28.68%
BUY
MODERATE Confidence
Analysis Updated: Jun 22, 2026 12:00 AM ET
Earnings: Aug 04, 2026
Smart Money Distribution
None View Scanner →
Strength: 6.9/10
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Interactive Price Chart (1 Month)
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Bottom Line:
💡 BUY OPPORTUNITY: CMI shows positive signals but monitor for confirmation. Market pricing in 3.6% growth. Moderate conviction.
💡 BUY OPPORTUNITY: CMI shows positive signals but monitor for confirmation. Market pricing in 3.6% growth. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$1017.00
Based on 9.4% avg growth
INTRINSIC VALUE TODAY
$631.48
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 20.1x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: CMI is currently trading at $705.48, which is considered extended relative to its 30-day fair value range of $650.18 to $699.20. From a valuation perspective, the stock is trading at a premium (Forward PE: 22.4) compared to its historical average (20.1). At these levels, the market is pricing in 3.6% annual earnings growth.
Technical Outlook: Technically, CMI is in a strong uptrend. Immediate support is located at $630.15, while resistance sits at $737.76.
Market Sentiment: CMI has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, CMI is in a strong uptrend. Immediate support is located at $630.15, while resistance sits at $737.76.
Market Sentiment: CMI has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
EXTENDED
Historical Trading Range
$650.18 -
$699.20
Company Quality Score
69/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
60.5%
All Signals
- BEARISH: Price extended above range
- BULLISH: Strong technical setup (75/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($744.33)
- BULLISH: Expecting earnings turnaround to 3.6% growth with 2.7% revenue growth
Trading Range Analysis
30-Day Trading Range
$650.18 -
$699.20
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$630.15
Resistance Level
$737.76
Current Trend
Strong Uptrend
Technical data as of
Jun 22, 2026
Fundamental Context
Forward P/E (Next Year Est.)
22.38
Wall Street Target
$744.33
(+2.7%)
Revenue Growth (YoY)
2.7%
Earnings Growth (YoY)
-21.0%
Profit Margin
7.9%
Valuation Premium vs History
+3.6% premium
PE vs Historical
22.4 vs 20.1
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+3.6%
(market-implied from PE analysis)
1-Year Target
$751.03
(+4%)
2-Year Target
$778.06
(+7%)
3-Year Target
$806.07
(+11%)
3-Yr Target (if PE normalizes)
(PE: 22→20)
PE COMPRESSION
$723.83
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.4, Growth: 14.8%)
$1095.92
(+51%)
Base:
(SPY PE: 21.8, Growth: 14.8%)
$1066.36
(+47%)
Bear:
(PE: 18.5, Growth: 14.8%)
$906.40
(+25%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (37x PE), but valuation improves significantly next year (22x PE) as earnings recover.
Trailing PE: 37.18 | Current EPS (TTM): $19.28
Bull Case
$1324.60
(+83%)
Analyst growth 68.0%, PE expands to 40.9
Base Case
$1204.18
(+66%)
Market implied 68.0%, PE stable at 37.2
Bear Case
$487.46
(-33%)
Severe decline -20.0%, PE contracts to 31.6
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: June 23, 2026 11:44 AM ET
Data refreshes hourly during market hours. Next update: 12:44 PM
Data refreshes hourly during market hours. Next update: 12:44 PM
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Technical Signals Check
Is CMI showing a specific setup today?
Insider Activity (6 Months)
2
Buys
7
Sells
Net
INSIDERS SELLING
Recent Transactions
Amy Rochelle Davis
SELL
4054 shares
2026-03-03
Donald G Jackson
SELL
1600 shares
2026-02-24
Amy Rochelle Davis
SELL
1864 shares
2026-02-23
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Professional options setups generated by AI based on today's CMI price and gamma walls.
