CMI
Cummins Inc.
ENGINES & TURBINES
Cummins (CMI) Stock: Buy, Sell, or Hold?
$463.26
+9.08 (+2.00%)
▲
5d:
-1.82%
30d:
-12.49%
90d:
-26.65%
QUANTITATIVE VERDICT
BUY
MODERATE Confidence (91%)
Quality Score
54/100
Position
OVERSOLD
30-Day Fair Range
$481.05 – $537.70
Position: OVERSOLD
Forward P/E & Valuation
13.8x
CHEAP
vs 19.0x historical avg
Wall Street Target
$646.93
+39.6% upside
Options IV & Volume
HIGH Vol
HIGH volume confirmation
Support / Resistance
$443.62 / $524.65
Trend: Strong Downtrend
Executive Thesis & Bottom Line
Forward Earnings Fair Value & Price Prediction →
💡 BUY OPPORTUNITY: CMI shows positive signals but monitor for confirmation. Market pricing in 10.1% decline. Moderate conviction.
CMI is flagged by 1 backtest-validated scanner today
SPY Bullish (stocks from this scanner have beaten SPY by a median 0.37% over the next 20 trading days; CMI has been on it 2 days). Backtested on 8 months of scanner history vs the S&P 500, as of 2026-11-11.
See all of today's Best Signals in the free scanner →Smart Money Accumulation
Options open interest is building while the stock consolidates - a pattern consistent with institutional accumulation. View Scanner →
Signal fired Nov 6, 2026 at $457.79 · last confirmed Nov 9, 2026
Strength: 7.6/10
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Interactive Price Chart (1 Month)
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Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$1130.59
Based on 12.4% avg growth
INTRINSIC VALUE TODAY
$702.01
34.0% Margin of Safety
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 19.0x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: CMI is currently trading at $463.26, which is considered oversold relative to its 30-day fair value range of $481.05 to $537.70. From a valuation perspective, the stock is trading at a discount (Forward PE: 13.8) compared to its historical average (19.0). Remarkably, the market is currently pricing in an annual earnings decline of 10.1% over the next few years. This pessimistic expectation contrasts with the company's recent 113.7% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, CMI is in a strong downtrend. Immediate support is located at $443.62, while resistance sits at $524.64.
Market Sentiment: CMI scores 64/100 on our bottoming-setup gauge — the chart has corrected and is stabilizing (RSI reset, momentum turning up), historically a favorable entry zone. Wall Street analysts see significant upside, with an average price target of $646.93 (+39.6%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, CMI is in a strong downtrend. Immediate support is located at $443.62, while resistance sits at $524.64.
Market Sentiment: CMI scores 64/100 on our bottoming-setup gauge — the chart has corrected and is stabilizing (RSI reset, momentum turning up), historically a favorable entry zone. Wall Street analysts see significant upside, with an average price target of $646.93 (+39.6%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$481.05 -
$537.70
Company Quality Score
54/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
90.5%
Trading Range & Key Levels
30-Day Trading Range
$481.05 -
$537.70
Current vs Trading Range
OVERSOLD
Support Level
$443.62
Resistance Level
$524.65
Current Trend
Strong Downtrend
Technical data as of
Nov 11, 2026
Quantitative Signal Breakdown
- BULLISH: Price oversold vs 30-day range
- BULLISH: Strong technical setup (64/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 39.6% below Wall St target ($646.93)
- BULLISH: Bottoming setup score 64/100 — corrected, stabilizing, and turning up
Fundamental Context
Forward P/E (Next Year Est.)
13.84
Wall Street Target
$646.93
(+39.6%)
Revenue Growth (YoY)
13.5%
Earnings Growth (YoY)
113.7%
Profit Margin
9.3%
Valuation Discount vs History
-10.1% cheaper
PE vs Historical
13.8 vs 19.0
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-10.1%
(market-implied from PE analysis)
1-Year Target
$416.93
(-10%)
2-Year Target
$375.24
(-19%)
3-Year Target
$337.72
(-27%)
3-Yr Target (if PE normalizes)
(PE: 14→19)
$463.63
(+0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 19.9, Growth: 20.7%)
$1169.16
(+152%)
Base:
(SPY PE: 13.8, Growth: 20.7%)
$814.76
(+76%)
Bear:
(PE: 11.8, Growth: 20.7%)
$692.54
(+50%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (19x PE), but valuation improves significantly next year (14x PE) as earnings recover.
Trailing PE: 18.95 | Current EPS (TTM): $23.97
Bull Case
$697.66
(+51%)
Analyst growth 39.6%, PE expands to 20.8
Base Case
$634.24
(+37%)
Market implied 39.6%, PE stable at 19.0
Bear Case
$308.84
(-33%)
Severe decline -20.0%, PE contracts to 16.1
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 13.8 to 19.0
Stabilization Target:
$635.98
(+37.3%)
PE Expansion Potential:
+37.3%
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bloggers & journalists: you are free to use our charts with attribution.Reddit & Retail Trader Sentiment (CMI)
Bullish
2 Retail Mentions
Reddit / WSB Comments
1
Bullish
StockTwits Volume
1 msgs
24h retail stream
Last Tracked
Oct 2, 2026
Daily AI digest
AI Retail Discussion Summary:
Bullish sentiment on StockTwits persists despite Caterpillar's high P/E ratio, with the latest article suggesting potential upside from increased sales and a declining P/E ratio.
Key Retail Themes:
Sales growth
P/E ratio
Aggregated from r/wallstreetbets, r/stocks & StockTwits streams.
View All Trending Reddit & WSB Stocks →
Last updated: November 12, 2026 2:43 AM ET
Data refreshes hourly during market hours. Next update: 3:43 AM
Data refreshes hourly during market hours. Next update: 3:43 AM
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Technical Signals Check
Is CMI showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
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