Stock Alert: Cummins Inc. (CMI) Deserves Your Immediate Attention

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My mind’s on gas

But frankly, I’m not as eager to know how Cummins fared in the last quarter as to what plans it has for 2013, especially when the conversation stops at the topic of town, natural gas.

Cummins is about to push one of its most advanced and important engines ISX 12G into full production this year. It is yet another offering from the house of Cummins-Westport, the long-standing tie-up between Cummins and Westport Innovations Inc. (NASDAQ:WPRT), but it is one of the most advanced products till date. So much so that Westport hopes to see as many as 16 new truck models from various makers opting for the engine this year. PACCAR has already chosen them for its ‘next-generation’ truck models.

Obama’s re-election has put the spotlight back on natural gas, and that is exactly why I am excited about Cummins’ earnings release. PACCAR sounded low when it tagged natural gas as ‘a pretty small factor’ as of now, and admitted how not much can be done unless infrastructure builds out to support the alternative fuel. I am just waiting to hear Cummins.

What you should wait for…

That leaves you with four great reasons to not miss Cummins’ earnings release this week:

  1. Cummins’ numbers help you gauge the health of the North American trucking industry as 50% of its engines are sold to this market. As the industry itself reflects the shape of things in the economy, every prudent investor should know what’s brewing in there.
  2. No Westport Innovations’ investor can afford to miss Cummins’ numbers, and vice-versa. Remember how Westport’s shares tanked the day Cummins announced its own 15-liter natural-gas engines last year? Yeah, you got my point.
  3. Cummins could give you great fodder for your favorite brunch conversation: natural gas. Need I say more?
  4. Of course, as a Cummins investor, don’t you want to know what path your company will tread in 2013?

Psst…I didn’t mention Cummins’ fourth-quarter performance as a reason above, because my sixth sense tells me it won’t be good.  Stay tuned as I dissect Cummins’ earnings release for you. Just click here to add Cummins to your stock watchlist.

The article Stock Alert: This One Deserves Your Immediate Attention originally appeared on Fool.com and is written by Neha Chamaria.

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