5-Star Stocks Poised to Pop: Cummins

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 (NYSE: 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 $18.9 billion
Industry Diversified machinery
Trailing-12-Month Revenue $18.7 billion
Management Chairman/CEO Thomas Linebarger
CFO Patrick Ward
Return on Equity (average, past 3 years) 27.2%
Cash/Debt $1.6 billion / $683.0 million
Dividend Yield 1.6%
Competitors Caterpillar
Detroit Diesel
Navistar International

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

On CAPS, 96% of the 1,514 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 joryko, tapped the stock as a timely bargain opportunity:

Recent sell off his given me the chance to greenthumb Cummins. Tremendous valuations everywhere on the company: [0.7 PEG] and an 8.5 Forward PE. Throw in that they have twice as much cash on hand as debt, a respectable 1.6% dividend and a strong concept for the future and I will hold this for years to come. 5 years +.

If you want market-thumping 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.

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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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