CMI Stock Analysis: Buy, Sell, or Hold?
CMI - Cummins Inc.
$661.70
-20.62 (-3.02%)
▼
5d:
-9.06%
30d:
-1.63%
90d:
+20.29%
HOLD
LOW Confidence
Analysis Updated: Jul 2, 2026 12:00 AM ET
Earnings: Aug 04, 2026
30d
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:
📊 HOLD: CMI shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
📊 HOLD: CMI shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$994.88
Based on 8.9% avg growth
INTRINSIC VALUE TODAY
$617.74
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 20.2x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: CMI is currently trading at $661.70, which is considered fair relative to its 30-day fair value range of $649.20 to $700.77. The stock's valuation (Forward PE: 20.5) is in line with its historical norms (20.2). At these levels, the market is pricing in 0.5% annual earnings growth.
Technical Outlook: Technically, CMI is in a strong uptrend. The price is currently testing key support at $673.85. A bounce from this level would confirm strength, while a break below could signal further downside. Short-term momentum is weak, with the stock down 3.0% recently.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $748.81 (+13.2%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, CMI is in a strong uptrend. The price is currently testing key support at $673.85. A bounce from this level would confirm strength, while a break below could signal further downside. Short-term momentum is weak, with the stock down 3.0% recently.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $748.81 (+13.2%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
FAIR
Historical Trading Range
$649.20 -
$700.77
Company Quality Score
55/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
68.6%
Protect Your Profits
Holding CMI? Use our AI-powered strategies to protect your downside while keeping your long-term position.
View Profit Protection PlanAll Signals
- NEUTRAL: Price in fair range
- NEUTRAL: Mixed technical signals (40/100)
- BULLISH: High volume confirmation
- BEARISH: Downward momentum (-3.0%)
- BULLISH: Trading below Wall St target ($748.81)
- BULLISH: Expecting earnings turnaround to 0.5% growth with 2.7% revenue growth
- CAUTION: Recommendation downgraded due to -9.1% 5-day decline
Trading Range Analysis
30-Day Trading Range
$649.20 -
$700.77
Current vs Trading Range
FAIR
Support & Resistance Levels
Support Level
$673.85
Resistance Level
$737.76
Current Trend
Strong Uptrend
Technical data as of
Jun 29, 2026
Fundamental Context
Forward P/E (Next Year Est.)
20.52
Wall Street Target
$748.81
(+13.2%)
Revenue Growth (YoY)
2.7%
Earnings Growth (YoY)
-21.0%
Profit Margin
7.9%
Valuation Premium vs History
+0.5% premium
PE vs Historical
20.5 vs 20.2
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+0.5%
(market-implied from PE analysis)
1-Year Target
$665.01
(+1%)
2-Year Target
$668.33
(+1%)
3-Year Target
$671.68
(+2%)
3-Yr Target (if PE normalizes)
(PE: 21→20)
PE COMPRESSION
$661.04
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: 13.8%)
$1033.66
(+56%)
Base:
(SPY PE: 20.5, Growth: 13.8%)
$974.10
(+47%)
Bear:
(PE: 17.4, Growth: 13.8%)
$827.98
(+25%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (35x PE), but valuation improves significantly next year (21x PE) as earnings recover.
Trailing PE: 35.46 | Current EPS (TTM): $19.24
Bull Case
$1257.64
(+90%)
Analyst growth 67.6%, PE expands to 39.0
Base Case
$1143.31
(+73%)
Market implied 67.6%, PE stable at 35.5
Bear Case
$463.98
(-30%)
Severe decline -20.0%, PE contracts to 30.1
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: July 04, 2026 3:47 AM ET
Data refreshes hourly during market hours. Next update: 4:47 AM
Data refreshes hourly during market hours. Next update: 4:47 AM
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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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