Cummins Outlook - Technical Weakness and Mixed Signals for CMI

Market Snapshot

Headline Takeaway: Cummins (CMI) is showing internal diagnostic score (0-10) technical weakness (1.99), with mixed analyst ratings and strong money inflows from large investors.

News Highlights

Recent news impacting Cummins includes:

• May 31, 2025: Trump fast-tracks Utah uranium mine — While not directly related to Cummins, the broader industrial sector may see mixed effects based on future price trends and policy changes.
• May 31, 2025: China’s factory activity contracts but shows signs of improvement — This could indirectly affect Cummins’ global supply chain, especially in manufacturing sectors.
• May 31, 2025: REX Shares plans Ethereum and Solana ETFs — No direct link to Cummins, but shows broader investor interest in alternative assets, which may shift capital from traditional equities like CMI.

Analyst Views & Fundamentals

Cummins’ stock is currently rated with a simple average rating of 5.00 and a performance-weighted rating of 3.47. These ratings suggest a relatively neutral stance from analysts, though there are notable differences in the weighting.

The price trend has been up by 5.94%, but analyst expectations are mixed. The ratings are not strongly aligned with the recent price movement, showing divergence between technical and fundamental indicators.

Key Fundamental Factors and Scores

• Revenue-Market Value (Revenue-MV): 2.59% (Internal diagnostic score: 1)
• EV/EBIT: 42.48 (Internal diagnostic score: 3)
• PE Ratio: 59.39 (Internal diagnostic score: 3)
• ROA (Return on Assets): 2.71% (Internal diagnostic score: 3)
• Profit-Market Value (Profit-MV): -23.33% (Internal diagnostic score: 3)
• Long-term Debt to Working Capital Ratio: 167.29% (Internal diagnostic score: 2)
• CFOA (Cash Flow from Operating Activities): 2.29% (Internal diagnostic score: 3)
• Interest Coverage Ratio: 1,528.05% (Internal diagnostic score: 2)
• Asset-MV: 1.73% (Internal diagnostic score: 3)
• Cash-MV: -14.10% (Internal diagnostic score: 3)

Money-Flow Trends

Cummins has shown strong money inflows recently, with large institutional investors playing a significant role. The fund flow score is 7.94 (good), indicating strong buying interest from big money:

• Large and Extra-large investors have a 48.34% and 52.27% inflow ratio, respectively, indicating strong institutional confidence.
• Retail flows show a 49.76% inflow ratio, suggesting retail investors are also participating in the stock’s movement.
• Overall inflow ratio stands at 50.55%, showing that the stock is currently attracting net positive flows.

Key Technical Signals

From a technical standpoint, Cummins is in a weak position, with the technical score at 1.99. Here's a breakdown of key signals:

• Williams %R Overbought: Internal diagnostic score (0-10) of 3.96 — indicating a neutral to bearish signal.
• Dividend Payable Date: Internal diagnostic score (0-10) of 1 — a strong bearish indicator based on historical underperformance.
• Shooting Star: Internal diagnostic score (0-10) of 1 — a classic bearish candlestick pattern suggesting a potential reversal.

Recent chart activity shows the WR Overbought pattern appearing five times over the past week, while Shooting Star emerged on September 12, 2025. The Dividend Payable Date was noted on September 4, 2025, adding to the bearish tilt.

Key insights from the technical model include a weak overall trend, with 3 bearish signals and 0 bullish ones. Investors are advised to avoid the stock for now due to the high concentration of bearish indicators.

Conclusion

Cummins (CMI) faces a mixed outlook at the moment. While institutional investors are showing strong buying interest, the technical signals suggest caution. The stock has weak internal diagnostic scores and is showing three bearish indicators with no bullish ones. Given the risk profile and technical weakness, the best strategy may be to consider waiting for a pull-back before entering long positions.