Winners and Losers in the S&P 500
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: Yahoo Finance
- Challenges for Cummins: Cummins (CMI), with a market cap of $92.16 billion, has seen flat sales over the past two years, indicating a lack of growth, while its gross margin of 24.7% reflects high production costs that impact profitability, and declining returns on capital suggest its historical profit centers are aging.
- Masco's Growth Struggles: Masco (MAS), valued at $13.85 billion, has shown no organic revenue growth over the past two years, with projected sales growth of only 1.7% for the next 12 months, indicating sluggish demand, while shrinking returns on capital suggest increasing competition is eroding profitability, with a stock price of $69.87 implying a forward P/E ratio of 15.9.
- Raymond James Stands Out: Raymond James (RJF), with a market cap of $28.34 billion, has achieved an annual revenue growth of 11.6% over the last five years, surpassing sector averages, and share repurchases have driven annual earnings per share growth of 16.2%, showcasing management's ability to invest in profitable ventures, trading at $145.40 per share with a forward P/E of 12.1.
- Market Trends Analysis: While the S&P 500 includes industry leaders, not all stocks are performing well, prompting investors to be cautious about the potential risks associated with Cummins and Masco, while Raymond James emerges as a stock to watch, demonstrating strong fundamentals and market momentum.
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Analyst Views on CMI
Wall Street analysts forecast CMI stock price to fall
13 Analyst Rating
7 Buy
6 Hold
0 Sell
Moderate Buy
Current: 668.680
Low
540.00
Averages
616.17
High
703.00
Current: 668.680
Low
540.00
Averages
616.17
High
703.00
About CMI
Cummins Inc. is a global power solutions company. Engine segment manufactures and markets a range of diesel and natural gas-powered engines under the Cummins brand name. Components segment designs, manufactures, and supplies products for the Engine and Power Systems segments, including drivetrain and braking systems for commercial diesel, gasoline and natural gas applications, aftertreatment systems, turbochargers, fuel systems, valvetrain technologies, automated transmissions and electronics. Distribution segment includes sales and support of a range of products and services, including power generation systems, high-horsepower engines, heavy-duty and medium-duty engines designed for on- and off-highway use, application engineering services, retail and wholesale aftermarket parts and in-shop and others. Accelera segment designs, manufactures, sells and supports electrified power systems with innovative components and subsystems, including battery and electric powertrain technologies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Winners and Losers in the S&P 500
- Challenges for Cummins: Cummins (CMI), with a market cap of $92.16 billion, has seen flat sales over the past two years, indicating a lack of growth, while its gross margin of 24.7% reflects high production costs that impact profitability, and declining returns on capital suggest its historical profit centers are aging.
- Masco's Growth Struggles: Masco (MAS), valued at $13.85 billion, has shown no organic revenue growth over the past two years, with projected sales growth of only 1.7% for the next 12 months, indicating sluggish demand, while shrinking returns on capital suggest increasing competition is eroding profitability, with a stock price of $69.87 implying a forward P/E ratio of 15.9.
- Raymond James Stands Out: Raymond James (RJF), with a market cap of $28.34 billion, has achieved an annual revenue growth of 11.6% over the last five years, surpassing sector averages, and share repurchases have driven annual earnings per share growth of 16.2%, showcasing management's ability to invest in profitable ventures, trading at $145.40 per share with a forward P/E of 12.1.
- Market Trends Analysis: While the S&P 500 includes industry leaders, not all stocks are performing well, prompting investors to be cautious about the potential risks associated with Cummins and Masco, while Raymond James emerges as a stock to watch, demonstrating strong fundamentals and market momentum.
See More
Cummins Transforms to Drive Growth Amid AI Demand
- Power Systems Growth: Cummins' power systems segment achieved a 19% year-over-year revenue increase in Q1, reaching $2 billion, with a record EBITDA margin of 29.5%, reflecting the company's strong response to data center demand in the AI era, and management expects margins to settle between 25% and 26% for the full year, well above historical levels.
- Order Backlog Advantage: In a supply-constrained market, Cummins' order backlog extends into 2028, enhancing earnings visibility; despite a 16% year-over-year decline in heavy-duty truck unit sales, the robust performance of the power systems segment allows the company to raise its 2026 revenue guidance to 8% to 11% growth.
- Long-Term Growth Targets: At its Analyst Day, management raised long-term targets to annual revenue growth of 6% to 9%, projecting revenues of $45 billion to $50 billion by 2030, with EBITDA margins exceeding 20%, demonstrating confidence in future growth.
- Investment Expansion Plan: To meet rising demand, Cummins announced a $450 million investment to expand its high-horsepower engine and generator capacity by 20 gigawatts, further strengthening its competitive position while preparing to launch new truck engines ahead of EPA27 regulations.
See More
Market Dynamics and Investment Opportunities Analysis
- Market Outlook: Stock futures are lower this morning, although oil prices are rebounding after strikes in Iran, and the PCE index showed a year-over-year increase of 3.8%, which, while high, did not exceed expectations, indicating a potential easing of inflationary pressures that could positively impact market sentiment.
- Snowflake Breakout: Snowflake shares soared over 35% today as it enhances its competitiveness against private Databricks by securing a $6 billion spending deal with Amazon Web Services, signaling a rerating in the cloud consumption AI sector.
- Salesforce Growth: Salesforce reported strong earnings last night, particularly in Agentforce, bolstered by a significant buyback; however, sluggish performance in Tableau and the commerce vertical led to a stock decline of over 1.5%, reflecting market caution regarding its future growth.
- Marvell's Strong Performance: Marvell delivered impressive earnings with accelerating revenue in data center chips and robust optical business performance, despite challenges in parts supply; shares rose 3.5%, indicating market confidence in its long-term growth potential.
See More
High Options Trading Volume for Cummins and D-Wave Quantum
- Cummins Options Volume: Cummins, Inc. (CMI) saw options trading volume of 8,078 contracts today, representing approximately 807,800 shares, which is about 91.3% of its average daily trading volume of 884,610 shares over the past month, indicating strong market interest in its future performance.
- High Demand Call Options: Among CMI's options, the $730 strike call option expiring on June 18, 2026, has particularly high volume with 1,724 contracts traded today, equating to approximately 172,400 shares, reflecting strong investor expectations for the stock's upward movement.
- D-Wave Options Activity: D-Wave Quantum Inc (QBTS) experienced options trading volume of 233,826 contracts today, representing about 23.4 million shares, or approximately 90.6% of its average daily trading volume of 25.8 million shares over the past month, showcasing its market activity.
- Bullish Call Options: The $25 strike call option for QBTS has shown significant activity today with 18,947 contracts traded, representing around 1.9 million shares, indicating a positive outlook from investors regarding its future growth potential.
See More
Cummins Raises 2030 Financial Targets Amid Strong Demand
- Financial Target Increase: Cummins announced at an analyst meeting that it is raising its 2030 financial targets, reflecting the company's success in executing its strategy amid rising market demand, which is expected to further enhance shareholder returns and profitability.
- Market Expansion Plans: The company plans to increase capacity and product investments in the mining and power generation markets, thereby strengthening its competitive position in these key areas to achieve sustainable business growth.
- Leading Power Systems: The Power Systems Business President highlighted that with the accelerating demand for reliable power, Cummins is effectively meeting market needs through deep vertical integration and an expanded product portfolio, creating value for both customers and investors.
- Commitment to Continued Growth: The Chief Financial Officer summarized the company's plans for growth, margin expansion, and capital allocation, stating that Cummins will continue to seize significant growth opportunities across various businesses and regions, enhancing return on invested capital.
See More
Nvidia Beats Earnings Estimates, Announces $80 Billion Buyback Plan
- Strong Earnings Performance: Nvidia exceeded earnings and revenue expectations in its fiscal first quarter, indicating robust market demand and product competitiveness, although its stock fell about 1% in after-hours trading.
- Massive Buyback Plan: The company's board authorized a stock repurchase plan of up to $80 billion, reflecting confidence in future growth and potentially enhancing earnings per share, thereby boosting investor sentiment.
- SpaceX IPO on the Horizon: Elon Musk's SpaceX has filed for an IPO, expected to be the largest in history with the ticker SPCX, generating significant investor interest due to its anticipated valuation.
- Housing Data Expectations: The housing starts data set to be released on Thursday is expected to be 1.42 million, with the market closely watching its impact on the real estate sector, particularly given the recent significant declines in several construction companies' stock prices.
See More
Winners and Losers in the S&P 500
- Challenges for Cummins: Cummins (CMI), with a market cap of $92.16 billion, has seen flat sales over the past two years, indicating a lack of growth, while its gross margin of 24.7% reflects high production costs that impact profitability, and declining returns on capital suggest its historical profit centers are aging.
- Masco's Growth Struggles: Masco (MAS), valued at $13.85 billion, has shown no organic revenue growth over the past two years, with projected sales growth of only 1.7% for the next 12 months, indicating sluggish demand, while shrinking returns on capital suggest increasing competition is eroding profitability, with a stock price of $69.87 implying a forward P/E ratio of 15.9.
- Raymond James Stands Out: Raymond James (RJF), with a market cap of $28.34 billion, has achieved an annual revenue growth of 11.6% over the last five years, surpassing sector averages, and share repurchases have driven annual earnings per share growth of 16.2%, showcasing management's ability to invest in profitable ventures, trading at $145.40 per share with a forward P/E of 12.1.
- Market Trends Analysis: While the S&P 500 includes industry leaders, not all stocks are performing well, prompting investors to be cautious about the potential risks associated with Cummins and Masco, while Raymond James emerges as a stock to watch, demonstrating strong fundamentals and market momentum.
See More
Cummins Transforms to Drive Growth Amid AI Demand
- Power Systems Growth: Cummins' power systems segment achieved a 19% year-over-year revenue increase in Q1, reaching $2 billion, with a record EBITDA margin of 29.5%, reflecting the company's strong response to data center demand in the AI era, and management expects margins to settle between 25% and 26% for the full year, well above historical levels.
- Order Backlog Advantage: In a supply-constrained market, Cummins' order backlog extends into 2028, enhancing earnings visibility; despite a 16% year-over-year decline in heavy-duty truck unit sales, the robust performance of the power systems segment allows the company to raise its 2026 revenue guidance to 8% to 11% growth.
- Long-Term Growth Targets: At its Analyst Day, management raised long-term targets to annual revenue growth of 6% to 9%, projecting revenues of $45 billion to $50 billion by 2030, with EBITDA margins exceeding 20%, demonstrating confidence in future growth.
- Investment Expansion Plan: To meet rising demand, Cummins announced a $450 million investment to expand its high-horsepower engine and generator capacity by 20 gigawatts, further strengthening its competitive position while preparing to launch new truck engines ahead of EPA27 regulations.
See More
Market Dynamics and Investment Opportunities Analysis
- Market Outlook: Stock futures are lower this morning, although oil prices are rebounding after strikes in Iran, and the PCE index showed a year-over-year increase of 3.8%, which, while high, did not exceed expectations, indicating a potential easing of inflationary pressures that could positively impact market sentiment.
- Snowflake Breakout: Snowflake shares soared over 35% today as it enhances its competitiveness against private Databricks by securing a $6 billion spending deal with Amazon Web Services, signaling a rerating in the cloud consumption AI sector.
- Salesforce Growth: Salesforce reported strong earnings last night, particularly in Agentforce, bolstered by a significant buyback; however, sluggish performance in Tableau and the commerce vertical led to a stock decline of over 1.5%, reflecting market caution regarding its future growth.
- Marvell's Strong Performance: Marvell delivered impressive earnings with accelerating revenue in data center chips and robust optical business performance, despite challenges in parts supply; shares rose 3.5%, indicating market confidence in its long-term growth potential.
See More
High Options Trading Volume for Cummins and D-Wave Quantum
- Cummins Options Volume: Cummins, Inc. (CMI) saw options trading volume of 8,078 contracts today, representing approximately 807,800 shares, which is about 91.3% of its average daily trading volume of 884,610 shares over the past month, indicating strong market interest in its future performance.
- High Demand Call Options: Among CMI's options, the $730 strike call option expiring on June 18, 2026, has particularly high volume with 1,724 contracts traded today, equating to approximately 172,400 shares, reflecting strong investor expectations for the stock's upward movement.
- D-Wave Options Activity: D-Wave Quantum Inc (QBTS) experienced options trading volume of 233,826 contracts today, representing about 23.4 million shares, or approximately 90.6% of its average daily trading volume of 25.8 million shares over the past month, showcasing its market activity.
- Bullish Call Options: The $25 strike call option for QBTS has shown significant activity today with 18,947 contracts traded, representing around 1.9 million shares, indicating a positive outlook from investors regarding its future growth potential.
See More
Cummins Raises 2030 Financial Targets Amid Strong Demand
- Financial Target Increase: Cummins announced at an analyst meeting that it is raising its 2030 financial targets, reflecting the company's success in executing its strategy amid rising market demand, which is expected to further enhance shareholder returns and profitability.
- Market Expansion Plans: The company plans to increase capacity and product investments in the mining and power generation markets, thereby strengthening its competitive position in these key areas to achieve sustainable business growth.
- Leading Power Systems: The Power Systems Business President highlighted that with the accelerating demand for reliable power, Cummins is effectively meeting market needs through deep vertical integration and an expanded product portfolio, creating value for both customers and investors.
- Commitment to Continued Growth: The Chief Financial Officer summarized the company's plans for growth, margin expansion, and capital allocation, stating that Cummins will continue to seize significant growth opportunities across various businesses and regions, enhancing return on invested capital.
See More
Nvidia Beats Earnings Estimates, Announces $80 Billion Buyback Plan
- Strong Earnings Performance: Nvidia exceeded earnings and revenue expectations in its fiscal first quarter, indicating robust market demand and product competitiveness, although its stock fell about 1% in after-hours trading.
- Massive Buyback Plan: The company's board authorized a stock repurchase plan of up to $80 billion, reflecting confidence in future growth and potentially enhancing earnings per share, thereby boosting investor sentiment.
- SpaceX IPO on the Horizon: Elon Musk's SpaceX has filed for an IPO, expected to be the largest in history with the ticker SPCX, generating significant investor interest due to its anticipated valuation.
- Housing Data Expectations: The housing starts data set to be released on Thursday is expected to be 1.42 million, with the market closely watching its impact on the real estate sector, particularly given the recent significant declines in several construction companies' stock prices.
See More
