CMI Stock Analysis: Buy, Sell, or Hold?
CMI - Cummins Inc.
$716.45
6.88 (0.97%)
▲
5d:
+4.92%
30d:
+19.12%
90d:
+21.68%
BUY
MODERATE Confidence
Analysis Updated: May 14, 2026 12:00 AM ET
Earnings: May 05, 2026
0d
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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 4.2% growth. Moderate conviction.
💡 BUY OPPORTUNITY: CMI shows positive signals but monitor for confirmation. Market pricing in 4.2% growth. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$952.59
Based on 8.6% avg growth
INTRINSIC VALUE TODAY
$591.48
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 19.9x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: CMI is currently trading at $716.45, which is considered extended relative to its 30-day fair value range of $604.11 to $689.00. From a valuation perspective, the stock is trading at a premium (Forward PE: 22.5) compared to its historical average (19.9). At these levels, the market is pricing in 4.2% annual earnings growth.
Technical Outlook: Technically, CMI is in a strong uptrend. The price is approaching resistance at $718.08. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: CMI has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. In the options market, Implied Volatility is low (0th percentile), suggesting options premiums are relatively cheap. This makes it an attractive time for long options strategies if you have a directional bias. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, CMI is in a strong uptrend. The price is approaching resistance at $718.08. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: CMI has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. In the options market, Implied Volatility is low (0th percentile), suggesting options premiums are relatively cheap. This makes it an attractive time for long options strategies if you have a directional bias. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
EXTENDED
Historical Trading Range
$604.11 -
$689.00
Company Quality Score
65/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
68.1%
All Signals
- BEARISH: Price extended above range
- BULLISH: Options cheap (IV 0th percentile)
- BULLISH: Strong technical setup (75/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($721.44)
- BULLISH: Expecting earnings turnaround to 4.2% growth with 2.7% revenue growth
Trading Range Analysis
30-Day Trading Range
$604.11 -
$689.00
Current vs Trading Range
EXTENDED
Expected Move (7 Days)
±$35.38
(4.9%)
Support & Resistance Levels
Support Level
$653.74
Resistance Level
$718.08
Current Trend
Strong Uptrend
Technical data as of
May 14, 2026
Fundamental Context
Forward P/E (Next Year Est.)
22.51
Wall Street Target
$721.44
(+0.7%)
Revenue Growth (YoY)
2.7%
Earnings Growth (YoY)
-21.0%
Profit Margin
7.9%
Valuation Premium vs History
+4.2% premium
PE vs Historical
22.5 vs 19.9
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+4.2%
(market-implied from PE analysis)
1-Year Target
$746.54
(+4%)
2-Year Target
$777.90
(+9%)
3-Year Target
$810.57
(+13%)
3-Yr Target (if PE normalizes)
(PE: 23→20)
PE COMPRESSION
$716.66
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.5, Growth: 13.1%)
$1036.47
(+45%)
Base:
(SPY PE: 22.0, Growth: 13.1%)
$1014.94
(+42%)
Bear:
(PE: 18.7, Growth: 13.1%)
$862.70
(+20%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (37x PE), but valuation improves significantly next year (23x PE) as earnings recover.
Trailing PE: 36.50 | Current EPS (TTM): $19.25
Bull Case
$1285.20
(+81%)
Analyst growth 66.3%, PE expands to 40.2
Base Case
$1168.37
(+65%)
Market implied 66.3%, PE stable at 36.5
Bear Case
$477.81
(-33%)
Severe decline -20.0%, PE contracts to 31.0
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: May 14, 2026 5:34 PM ET
Data refreshes hourly during market hours. Next update: 6:34 PM
Data refreshes hourly during market hours. Next update: 6:34 PM
🔥 Top Stocks Breaking Out Now
| Ticker | Score | Recommendation | Change % |
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Technical Signals Check
Is CMI showing a specific setup today?
Insider Activity (6 Months)
2
Buys
8
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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Advanced CMI Option Strategies
Professional options setups generated by AI based on today's CMI price and gamma walls.
