Cummins Inc. ($CMI) Target: $127 Confident Investor Rating: Poor

Company name Cummins Inc.
Stock ticker CMI
Live stock price [stckqut]CMI[/stckqut]
P/E compared to competitors Good
MANAGEMENT EXECUTION
Employee productivity Fair
Sales growth Poor
EPS growth Good
P/E growth Poor
EBIT growth Poor
ANALYSIS
Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $172.28
Target stock price (averages with growth) $184.67
Target stock price (averages with no growth) $112.45
Target stock price (manual assumptions) $114.77

The following company description is from Google Finance: http://www.google.com/finance?q=cmi
Cummins Inc. is engaged in the designing, manufacturing, distributing and servicing diesel and natural gas engines, electric power generation systems and engine-related component products, including filtration and exhaust after treatment, fuel systems, controls and air handling systems. The Company sells its products to the original equipment manufacturers (OEMs), distributors and customers globally. The Company serves its customers through a network of more than 500 Company-owned and independent distributor locations and approximately 5,200 dealer locations in more than 190 countries and territories. The Company operates in four business segments: engine segment, power generation segment, components segment and the distribution segment. In January 2010 the Company purchased an additional 50% ownership interest in Cummins Western Canada.


Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in this stock. I know that some people invest in this company as a “green” play but I cannot sanction that strategy. Also, even though the company’s target stock price is higher than it is currently trading, I cannot recommend this stock as a confident investment.


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