Why Cummins Is Poised to Outperform

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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 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

$21.9 billion


Diversified machinery

Trailing-12-Month Revenue

$16.8 billion


Chairman/CEO Thomas Linebarger

CFO Patrick Ward

Return on Equity (average, past 3 years)



$1.7 billion / $803.0 million

Dividend Yield




Navistar International

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

On CAPS, 96% of the 1,706 members who have rated Cummins believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, yomanlyman, succinctly summed up the Cummins bull case for our community:

I like that the company is well regarded by its industry and its competitors. It is recognized for its focus on sustainability, community and is well positioned if a natural gas transportation infrastructure is built out in the United States. One of its competitor's, Navistar, was forced to subcontract out to Cummins to meet more stringent EPA requirements on it engines. The company is riding out an international recession, but should profit if companies worldwide begin to spend again on more efficient and sustainable machinery.   

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.

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The article Why Cummins Is Poised to Outperform originally appeared on Fool.com.

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.

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