Cummins Inc. (CMI) Hit a 52 Week High, Can the Run Continue?

Shares of Cummins (CMI) have been strong performers lately, with the stock up 9.3% over the past month. The stock hit a new 52-week high of $547.43 in the previous session. Cummins has gained 7.1% since the start of the year compared to the 10.6% move for the Zacks Auto-Tires-Trucks sector and the 57.9% return for the Zacks Automotive - Internal Combustion Engines industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 6, 2025, Cummins reported EPS of $5.59 versus consensus estimate of $4.73 while it beat the consensus revenue estimate by 3.24%.For the current fiscal year, Cummins is expected to post earnings of $26.04 per share on $33.3 in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $29.86 per share on $35.21 in revenues. This represents a year-over-year change of 12.64% and 5.74%, respectively.Valuation MetricsThough Cummins has recently hit a 52-week high, what is next for Cummins? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Cummins has a Value Score of B. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 21X current fiscal year EPS estimates, which is not in-line with the peer industry average of 21X. On a trailing cash flow basis, the stock currently trades at 18.6X versus its peer group's average of 20.4X. Additionally, the stock has a PEG ratio of 1.91. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Cummins currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Cummins passes the test. Thus, it seems as though Cummins shares could have a bit more room to run in the near term.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cummins Inc. (CMI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks