5-Star Stocks Poised to Pop: Cummins

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, diesel engine manufacturer Cummins (NYS: CMI) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Cummins' business and see what CAPS investors are saying about the stock right now.

Cummins facts

Headquarters (founded)Columbus, Ind. (1919)
Market Cap$19.0 billion
IndustryDiversified machinery
Trailing-12-Month Revenue$18.5 billion
ManagementChairman/CEO Thomas Linebarger
CFO Patrick Ward
Return on Equity (average, past 3 years)29.5%
Cash/Debt$1.4 billion / $794.0 million
Dividend Yield2%
CompetitorsCaterpillar
Detroit Diesel
Navistar International

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 1,578 members who have rated Cummins believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, troym72, succinctly summed up the bull case for our community:

With a P/E just over 10 and incredible growth in their Natural Gas engine division, [Cummins] is well-positioned. Fleet vehicles with NG engines are on the road already with more coming. NG fueling stations are being built. Even if NG is a flop, Cummings is still a top-notch and well respected diesel engine builder.

If you want market-topping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Cummins may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.

The article 5-Star Stocks Poised to Pop: Cummins originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Cummins. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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