Cummins (CMI -0.20%) has been hit by a wave of analyst downgrades lately. Deutsche Bank, William Blair, and BB&T Capital Markets are just some of the analyst firms that have grown increasingly cautious about the engine maker's future, each downgrading the stock last month. That's one of the bigger reasons, aside from Caterpillar's slashed outlook and other macro concerns, that Cummins shares have lost nearly 13% over the past three months.
While I usually take analyst upgrades and downgrades with a pinch of salt given how frequently views change, Cummins investors need to take a closer look at why so many analysts are bearish about the company, especially because Cummins' third-quarter earnings are around the corner. So the concerns that analysts have highlighted could also show up in the company's upcoming numbers and outlook.
In the following slideshow, I've highlighted five such headwinds that could hurt Cummins' growth going forward.
The next billion-dollar iSecret
The world's biggest tech company forgot to show you something at its recent event, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here.
