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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 $20.5 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) 22.2%
Cash/Debt $1.4 billion / $713.0 million
Dividend Yield 1.5%
Competitors Caterpillar
Detroit Diesel
Navistar International

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

On CAPS, 96% of the 1,408 members who have rated Cummins believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, MotleyViking, touched on the tailwinds working in Cummins' favor:

Cummins is perfectly positioned to take advantage of the cyclical demand for trucks. Aging truck fleets will need to be replaced, and the geographic diversity in [Cummins'] revenue mix is an added security blanket to the current global volatility. I like [Cummins] over the next 3 years. With accelerating dividend growth and a stock buyback program in place, [Cummins] will easily outpace the market.

What do you think about Cummins, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

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

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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Brian Pacampara
TMFEZMagic

I take a look at big 10% moves, as well as stock-shaking analyst calls, on a daily basis for The Fool. While I don't believe in active trading, closely monitoring Mr. Market's mood swings can help identify long-term opportunities.

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Related Tickers

10/22/2014 4:01 PM
CMI $132.00 Down -2.80 -2.08%
Cummins CAPS Rating: *****

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