Why Cummins Is Ready to Rebound

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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 has earned a coveted five-star ranking.

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

Cummins facts

Headquarters (founded)

Columbus, Ind. (1919)

Market Cap

$20.9 billion

Industry

Diversified machinery

Trailing-12-Month Revenue

$17.3 billion

Management

Chairman/CEO Thomas Linebarger

CFO Patrick Ward

Return on Equity (average, past 3 years)

29.4%

Cash/Debt

$1.6 billion / $775.0 million

Dividend Yield

1.9%

Competitors

Caterpillar

Navistar International


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

On CAPS, 96% of the 1,688 members who have rated Cummins believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star dockofthebay, succinctly summed up the bull case for our community: "Cummins has a strong position in both diesel and natural gas engines for heavy duty trucks. The company is not dependent upon a large scale switch to truck engines powered by natural gas, but Cummins is well positioned if that switch takes place."

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a perfect 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 2013." 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.

The article Why Cummins Is Ready to Rebound originally appeared on Fool.com.

Motley Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Cummins. The Motley Fool owns 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 Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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