Cummins Stock Alpha and Beta Analysis
| CMI Stock | USD 292.34 0.36 0.12% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Cummins. It also helps investors analyze the systematic and unsystematic risks associated with investing in Cummins over a specified time horizon. Remember, high Cummins' alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to Cummins' market risk premium analysis include:
Beta (0.17) | Alpha 0.36 | Risk 1.38 | Sharpe Ratio 0.24 | Expected Return 0.34 |
Cummins Quarterly Cash And Equivalents |
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Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
Cummins |
Cummins Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Cummins market risk premium is the additional return an investor will receive from holding Cummins long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Cummins. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Cummins' performance over market.| α | 0.36 | β | -0.17 |
Cummins expected buy-and-hold returns
Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Cummins' Buy-and-hold return. Our buy-and-hold chart shows how Cummins performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Cummins Market Price Analysis
Market price analysis indicators help investors to evaluate how Cummins stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Cummins shares will generate the highest return on investment. By understating and applying Cummins stock market price indicators, traders can identify Cummins position entry and exit signals to maximize returns.
Cummins Return and Market Media
The median price of Cummins for the period between Thu, Jan 25, 2024 and Wed, Apr 24, 2024 is 270.26 with a coefficient of variation of 7.88. The daily time series for the period is distributed with a sample standard deviation of 21.42, arithmetic mean of 271.71, and mean deviation of 18.14. The Stock received a lot of media exposure during the period. Price Growth (%) |
| Timeline |
| Cummins dividend paid on 7th of March 2024 | 03/07/2024 |
1 | Cummins Path Forward Analyst Highlights Impact of Emission Settlement And 2027 Market Dynamics | 03/14/2024 |
2 | Dhoni versus Kohli as IPL T20 season begins with clash of two Indian legends | 03/20/2024 |
3 | Former CEOs of JetBlue, Maersk Drilling, and Public Service Enterprise Group join Avina Clean Hydrogens distinguished advisory board | 04/03/2024 |
4 | High Speed Engine Market to reach 32.26 billion by 2030, at a CAGR of 7.2, says Coherent Market Insights | 04/08/2024 |
5 | Chevron Partners With Accelera for Electrolyzer System | 04/09/2024 |
6 | Data Center Generator Market To Reach USD 15.3 Billion By 2032 DataHorizzon Research | 04/11/2024 |
7 | Cummins Valuing the Power of Difference | 04/15/2024 |
8 | Cummins Water Works Watershed Warriors | 04/17/2024 |
9 | FIRST-QUARTER 2024 SALES | 04/18/2024 |
10 | Cummins introduces diesel hybrid mining truck in China | 04/19/2024 |
11 | Verizon Communications Inc. Q1 2024 Earnings Call Transcript | 04/23/2024 |
About Cummins Beta and Alpha
For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Cummins or other stocks. Alpha measures the amount that position in Cummins has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
| 2021 | 2022 | 2023 | 2024 (projected) | Dividend Yield | 0.0256 | 0.0249 | 0.0271 | 0.0282 | Price To Sales Ratio | 1.31 | 1.22 | 1.0 | 0.54 |
Cummins Upcoming Company Events
As portrayed in its financial statements, the presentation of Cummins' financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Cummins' leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Cummins' public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Cummins. Please utilize our Beneish M Score to check the likelihood of Cummins' management manipulating its earnings.
| 6th of February 2024 Upcoming Quarterly Report | View | |
| 7th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 6th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Build Portfolio with Cummins
Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.Build Diversified Portfolios
Align your risk with return expectations
Check out Cummins Backtesting, Cummins Valuation, Cummins Correlation, Cummins Hype Analysis, Cummins Volatility, Cummins History and analyze Cummins Performance. For more detail on how to invest in Cummins Stock please use our How to Invest in Cummins guide.You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Complementary Tools for Cummins Stock analysis
When running Cummins' price analysis, check to measure Cummins' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cummins is operating at the current time. Most of Cummins' value examination focuses on studying past and present price action to predict the probability of Cummins' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cummins' price. Additionally, you may evaluate how the addition of Cummins to your portfolios can decrease your overall portfolio volatility.
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Cummins technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.