The next year is looking like a perfect storm for Cummins (CMI),
with almost every major market the company serves poised to get worse
(heavy duty trucks in Brazil is the one real exception). And yet, with
the shares up about 10% since my last update
and only the first down quarter in the cycle in the books, investors
seem to already be looking well ahead to the recovery that will
inevitably come.
Make no mistake, Cummins is one of
the best-run heavy machinery companies out there, and I like the
company’s share growth and market/product expansion opportunities.
Still, I’ve seen too many cycles to shrug and assume “this cycle will be
different”. Give me a 10% to 15% pullback, though, and I get a lot more
positive on the long-term benefits of owning these shares.
Read more here:
Cummins Priced For A Recovery But Only Starting Its Downturn
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