Please ensure Javascript is enabled for purposes of website accessibility

The 3 Biggest Hurdles to Cummins Inc.'s Growth in 2016

By Neha Chamaria - Jan 23, 2016 at 8:40AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

These massive headwinds could dent Cummins' growth prospects going forward

Falling profits, muted outlook, aggressive restructuring -- that pretty much sums up Cummins' (CMI 1.73%) last year. Or should I say, it sums up 2015 for most heavy-machinery companies.

But Cummins has been among the biggest losers in the industry over the past year, falling more than rival Caterpillar (CAT 1.46%) despite a smaller exposure to the struggling mining and oil and gas sectors. In fact, Cummins also took a bigger hit than PACCAR (PCAR 0.79%), its key customer in the trucking industry.

CMI Chart

CMI data by YCharts.

Cummins is clearly under tremendous pressure, and there's little to suggest that things will improve anytime soon. Take a look at the slideshow below to learn about the three biggest hurdles to the company's growth this year.





Neha Chamaria has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Cummins and Paccar. 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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Caterpillar Inc. Stock Quote
Caterpillar Inc.
CAT
$196.84 (1.46%) $2.84
Cummins Inc. Stock Quote
Cummins Inc.
CMI
$227.76 (1.73%) $3.88
PACCAR Inc Stock Quote
PACCAR Inc
PCAR
$93.73 (0.79%) $0.73

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
400%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/13/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.