Shares in truck engine manufacturer Cummins
have continued their strong run this year with the stock up around
9.5% year to date. Moreover, the indications from the industry are that
North American conditions improved over the quarter, and key customers
like Navistar and Paccar are also seeing improvements. With that said, what are the risks and rewards of buying Cummins stock today?
North American demand improving
Cummins reports out of four separate segments, with engine and components (mainly trucking) being the most important by far. A breakout of its earnings before interest, or EBIT, demonstrates what really matters.
Cummins reports out of four separate segments, with engine and components (mainly trucking) being the most important by far. A breakout of its earnings before interest, or EBIT, demonstrates what really matters.
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