Top Stock of the Week: CMI

Alphanso’s AI Stock Research picked CMI as one of the top stocks of the week.

Alphanso Rating: 9.8/10

CMI (Cummins Inc.) is a standout example of a high-quality company with solid valuation support, low risk of estimate cuts, and strong operational efficiency. 

Fundamental Metrics:

1. The company has high forward revenue growth of 10.27% vs 8.67% industry median growth, pointing to strong business competitiveness.
2. Current EBITDA margin of 13.61% has been growing consistently over last 5 years, pointing to scalability and operations efficiency. 
3.  Forward P/E ratio of 11.72 is below the sector median value of 16.89, indicating reasonable valuation of the company.
4. ROE of 27.94% is well above the sector median and shows management and business efficiency.

Technical Metrics:

Based on the Alphanso model, the stock is trading below the expected channel (range) of $273 – $288.64.