17. Cummins Inc. (NYSE:CMI)
Number of Hedge Fund Holders In Q2 2024: 38
Average Analyst EPS % Revision: -0.2%
Cummins Inc. (NYSE:CMI) is one of the oldest industrial products companies in America. The firm has been in business since 1919. Cummins Inc. (NYSE:CMI)’s stock is up by 34% year to date and the shares soared to a new all time high of $323 in September. The share price performance is being driven by several catalysts. For instance, the firm believes that there is stable revenue growth for it in place as far ahead as in 2026. This is because new EPA laws are slated to go into effect in 2027, which has led management to believe that 2026 should see advanced buying by large fleet companies to enable them to take advantage of the current relaxed rules. However, Cummins Inc. (NYSE:CMI) can face some weakness in the heavy duty market which is slated to drop next year. Analysts expect the firm to earn $34.6 billion in revenue next year, and Cummins Inc. (NYSE:CMI) has also been positioning itself to become a key player in the clean fuel engine industry. The firm is focusing on clean diesel, hydrogen, and natural gas engines, which can create sizeable catalysts for it in the commercial vehicle industry. Cummins Inc. (NYSE:CMI)’s sizeable revenues, with trailing twelve month revenue sitting at $34 billion have also allowed it to be a dividend paying stock as the firm has been paying dividends for 54 years.
Cummins Inc. (NYSE:CMI)’s management shared details about some of these initiatives during the Q2 2024 earnings call:
“Also this quarter, we further progressed our partnership with Daimler Trucks and buses and PACCAR as we completed the formation of joint venture now known as Amplify Cell Technologies, to localize battery cell production in the in the battery supply chain the United States. This included naming the Chief Executive Officer of joint venture and breaking ground at a new manufacturing plant in Marshall County, Mississippi. Amplify Cell Technologies will enable Accelera by Cummins and our partners to advance battery cells focused on commercial and industrial applications in North America and serve our customers’ evolving needs.
This is a significant step forward as we continue leading our industry into the next era of smarter, cleaner power. And in July, Accelera was awarded $75 million from the Department of Energy to convert approximately 360,000 square feet of existing manufacturing space at our Columbus, Indiana engine plant for zero emissions components, including battery packs and electric powertrain systems. The $75 million grant is the largest federal grant ever awarded solely to Cummins and as part of the appropriations related to the inflation Reduction Act. The Columbus engine plant is also where we manufacture blocks and heads for our current and next-generation engine-based solutions, further showcasing our Destination Zero strategy in action. Now, I will comment on the overall company performance for the second quarter of 2024 and cover some of our key markets, starting with North America before moving on to our largest international markets.”
