Cummins (NYSE: CMI) stock price has quietly reached a peak, aligning itself with fellow industrial giants like Emerson Electric, Rolls-Royce, and Illinois Tool Works. With a three-week surge, it has clinched a record high of $295, marking an 88% increase over the last five years and a 22% rise this year.

Thriving Business Operations

Among the major players in the industrial sector in the U.S., Cummins is recognized for producing an array of products ranging from automated transmissions, axles, and brakes to automotive and power generation engines. Its impact can be seen in everyday use products supplied to leading companies like PACCAR, Ford, Isuzu, and Volkswagen, along with substantial international collaborations.

The core of Cummins' revenue comes from the components segment, followed by engines, distribution, power systems, and Accera areas. Bolstered by robust demand globally, Cummins has significantly expanded its annual revenue from over $23 billion in 2019 to surpass $34 billion in 2023, further catalyzed by strategic acquisitions such as the Meritor deal.

Cummins Stock Outlook

Amid a positive outlook for Cummins, analysts remain optimistic about the company's future growth prospects. Forecasts indicate continued revenue growth from around $33 billion this year to an estimated $34.62 billion by 2025. The company's undervalued status is evident through its trailing PE, forward PE, and PEG ratios, which remain below sector medians.

Technical Analysis

Cummins' weekly chart illustrates a robust bullish trend over recent months, surpassing significant resistance points. With notable indicators like the Average Directional Index (ADX) and MACD signaling strength, the stock price maintains an upward momentum above pivotal moving averages. Considering these factors, a short-term pullback towards $260 is anticipated before the bullish trend resumes.