Cummins Stock Odds of Future Stock Price Finishing Under 144.62
| CMI Stock | USD 292.34 0.36 0.12% |
Closest to current price Cummins long CALL Option Payoff at Expiration
Cummins |
Cummins Target Price Odds to finish below 144.62
The tendency of Cummins Stock price to converge on an average value over time is a known aspect in finance that investors have used since the beginning of the stock market for forecasting. However, many studies suggest that some traded equity instruments are consistently mispriced before traders' demand and supply correct the spread. One possible conclusion to this anomaly is that these stocks have additional risk, for which investors demand compensation in the form of extra returns.
| Current Price | Horizon | Target Price | Odds to drop to $ 144.62 or more in 90 days |
| 292.34 | 90 days | 144.62 | near 1 |
Based on a normal probability distribution, the odds of Cummins to drop to $ 144.62 or more in 90 days from now is near 1 (This Cummins probability density function shows the probability of Cummins Stock to fall within a particular range of prices over 90 days) . Probability of Cummins price to stay between $ 144.62 and its current price of $292.34 at the end of the 90-day period is about 83.2 .
Considering the 90-day investment horizon Cummins has a beta of -0.17 suggesting as returns on the benchmark increase, returns on holding Cummins are expected to decrease at a much lower rate. During a bear market, however, Cummins is likely to outperform the market. Additionally Cummins has an alpha of 0.3637, implying that it can generate a 0.36 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta). Cummins Price Density |
| Price |
Predictive Modules for Cummins
There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Cummins. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Cummins' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Cummins Risk Indicators
For the most part, the last 10-20 years have been a very volatile time for the stock market. Cummins is not an exception. The market had few large corrections towards the Cummins' value, including both sudden drops in prices as well as massive rallies. These swings have made and broken many portfolios. An investor can limit the violent swings in their portfolio by implementing a hedging strategy designed to limit downside losses. If you hold Cummins, one way to have your portfolio be protected is to always look up for changing volatility and market elasticity of Cummins within the framework of very fundamental risk indicators.α | Alpha over NYSE Composite | 0.36 | |
β | Beta against NYSE Composite | -0.17 | |
σ | Overall volatility | 21.42 | |
Ir | Information ratio | 0.19 |
Cummins Alerts and Suggestions
In today's market, stock alerts give investors the competitive edge they need to time the market and increase returns. Checking the ongoing alerts of Cummins for significant developments is a great way to find new opportunities for your next move. Suggestions and notifications for Cummins can help investors quickly react to important events or material changes in technical or fundamental conditions and significant headlines that can affect investment decisions.| Cummins is unlikely to experience financial distress in the next 2 years | |
| Cummins has a strong financial position based on the latest SEC filings | |
| Over 89.0% of the company shares are held by institutions such as insurance companies | |
| On 7th of March 2024 Cummins paid $ 1.68 per share dividend to its current shareholders | |
| Latest headline from finance.yahoo.com: Verizon Communications Inc. Q1 2024 Earnings Call Transcript |
Cummins Price Density Drivers
Market volatility will typically increase when nervous long traders begin to feel the short-sellers pressure to drive the market lower. The future price of Cummins Stock often depends not only on the future outlook of the current and potential Cummins' investors but also on the ongoing dynamics between investors with different trading styles. Because the market risk indicators may have small false signals, it is better to identify suitable times to hedge a portfolio using different long/short signals. Cummins' indicators that are reflective of the short sentiment are summarized in the table below.
| Common Stock Shares Outstanding | 142.7 M | |
| Cash And Short Term Investments | 2.7 B |
Cummins Technical Analysis
Cummins' future price can be derived by breaking down and analyzing its technical indicators over time. Cummins Stock technical analysis helps investors analyze different prices and returns patterns as well as diagnose historical swings to determine the real value of Cummins. In general, you should focus on analyzing Cummins Stock price patterns and their correlations with different microeconomic environments and drivers.
Cummins Predictive Forecast Models
Cummins' time-series forecasting models is one of many Cummins' stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models are widely used for non-stationary data. Non-stationary data are called the data whose statistical properties, e.g., the mean and standard deviation, are not constant over time, but instead, these metrics vary over time. This non-stationary Cummins' historical data is usually called time series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the stock market movement and maximize returns from investment trading.
Things to note about Cummins
Checking the ongoing alerts about Cummins for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for Cummins help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
| Cummins is unlikely to experience financial distress in the next 2 years | |
| Cummins has a strong financial position based on the latest SEC filings | |
| Over 89.0% of the company shares are held by institutions such as insurance companies | |
| On 7th of March 2024 Cummins paid $ 1.68 per share dividend to its current shareholders | |
| Latest headline from finance.yahoo.com: Verizon Communications Inc. Q1 2024 Earnings Call Transcript |
Check out Cummins Backtesting, Cummins Valuation, Cummins Correlation, Cummins Hype Analysis, Cummins Volatility, Cummins History as well as 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 Stocks Directory module to find actively traded stocks across global markets.
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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Is Cummins' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cummins. If investors know Cummins will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cummins listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.628 | Dividend Share 6.5 | Earnings Share 5.15 | Revenue Per Share 240.402 | Quarterly Revenue Growth 0.099 |
The market value of Cummins is measured differently than its book value, which is the value of Cummins that is recorded on the company's balance sheet. Investors also form their own opinion of Cummins' value that differs from its market value or its book value, called intrinsic value, which is Cummins' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cummins' market value can be influenced by many factors that don't directly affect Cummins' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cummins' value and its price as these two are different measures arrived at by different means. Investors typically determine if Cummins is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cummins' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.