Should You Buy Cummins Inc (CMI) Today? Analysis, Price Targets, and 2026 Outlook.
Analysis Updated At
2026/01/28
CMI is not a good buy right now for a beginner long-term investor who is impatient and wants to deploy $50k–$100k quickly. The stock is already extended near resistance (~$585–$591) with weakening short-term momentum (bearish/expanding negative MACD), while insider selling has surged and recent Congress activity is exclusively selling. With the next earnings (Feb 5, pre-market) as a near-term binary event and recent quarter fundamentals down YoY, the risk/reward is not attractive for an immediate full-position entry at ~$579.
Technical Analysis
Trend/Structure: Mixed. Price is in a broader uptrend (SMA_5 > SMA_20 > SMA_200), but near-term momentum is fading.
Momentum: MACD histogram is -0.515 and negatively expanding, signaling bearish momentum building despite the longer-term uptrend. RSI(6) ~63.9 is neutral-to-slightly warm (not oversold), so there is no “cheap” technical entry signal.
Levels: Pivot ~573.7 is the key near-term line. Resistance is close at R1 ~584.7 and R2 ~591.4, meaning upside is technically capped nearby unless a breakout occurs. Supports are S1 ~562.7 and S2 ~555.9.
Probability (pattern-based): Mildly constructive short horizon (next week estimate +6.32%), but the current setup is still a late-stage/near-resistance entry.
Intellectia Proprietary Trading Signals
- [AI Stock Picker](module://ai_stock_pick): No signal on given stock today.
- [SwingMax](module://swingmax): No signal on given stock today.
Analyst Ratings and Price Target Trends
Recent trend: Net-positive but with a notable valuation-driven caution. Several price targets were raised (e.g., Barclays to $610, Wells Fargo to $630, Truist to $653), and multiple firms kept/initiated positive stances (Overweight/Buy/Outperform). However, Wolfe Research downgraded to Peer Perform and removed its $540 target, explicitly citing more balanced risk/reward after strong outperformance.
Wall Street pros: Structural drivers into 2026 (power gen/data centers, emissions-related cycle dynamics, improving earnings power) and multiple bullish/raised targets.
Wall Street cons: After a strong run, valuation/risk-reward looks less compelling (as per Wolfe), and near-term truck/ag exposure can remain choppy—making timing less favorable at current levels.
Wall Street analysts forecast CMI stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CMI is 538 USD with a low forecast of 385 USD and a high forecast of 653 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
Wall Street analysts forecast CMI stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CMI is 538 USD with a low forecast of 385 USD and a high forecast of 653 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
Current: 577.860
Current: 577.860
