Is Cummins Stock Outperforming the Nasdaq?

Is Cummins Stock Outperforming the Nasdaq?

Aritra Gangopadhyay

Thu, September 10, 2026 at 2:49 PM GMT+3 2 min read

• ^IXIC +0.96%
• CMI +1.22%

Columbus, Indiana-based Cummins Inc. (CMI) offers various power solutions worldwide and operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company has a market cap of $76.4 billion and offers diesel- and natural gas-powered engines, drivetrain systems, including axles, drivelines, brakes, and suspension systems, and more.

Companies with a market cap of $10 billion or more are typically referred to as "large-cap stocks." CMI fits perfectly into that category, with its market cap exceeding this threshold and reflecting its substantial size and influence in the specialty industrial machinery industry.

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CMI stock reached its 52-week high of $737.76 on June 18 and has slipped 24.8% from that peak. The stock has fallen 17.1% over the past three months, underperforming the Nasdaq Composite ($NASX), which grew 2.2% over the same period.

Over the longer term, the scenario changes. CMI is up 40.5% over the past 52 weeks, rallying NASX's 20% return over the same period.

CMI has been trading below its 200-day moving average since August and also below its 50-day moving average since July.

On Aug. 5, CMI stock rose 2.3% following the release of its mixed Q2 2026 earnings. The company's revenue for the quarter rose 9.4% from the prior year's quarter to $9.5 billion and surpassed the Street's estimates. However, its adjusted EPS for the period came in at $6.94, failing to touch Wall Street's forecasts. Management highlighted surging power generation demand, boosted by data centers, as a driver of its growth and future growth as well.

When stacked against its peer in the specialty industrial machinery industry, Illinois Tool Works Inc. (ITW) shares have grown marginally over the past 52 weeks, lagging behind CMI's performance over the same time period.

Wall Street's view of CMI stock is somewhat bullish. Among the 19 analysts covering the stock, the overall consensus rating is "Moderate Buy." Its mean price target of $761.06 offers a 37.2% upside potential.

On the date of publication, Aritra Gangopadhyay did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com