Cummins Stock Alpha and Beta Analysis
| CMI Stock | USD 321.70 8.78 2.81% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Cummins. It also helps investors analyze the systematic and unsystematic risks associated with investing in Cummins over a specified time horizon. Remember, high Cummins' alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to Cummins' market risk premium analysis include:
Beta 0.9 | Alpha (0.15) | Risk 1.77 | Sharpe Ratio (0.11) | Expected Return (0.20) |
Cummins Quarterly Cash And Equivalents |
|
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
Cummins |
Cummins Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Cummins market risk premium is the additional return an investor will receive from holding Cummins long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Cummins. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Cummins' performance over market.| α | -0.15 | β | 0.90 |
Cummins expected buy-and-hold returns
Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Cummins' Buy-and-hold return. Our buy-and-hold chart shows how Cummins performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Cummins Market Price Analysis
Market price analysis indicators help investors to evaluate how Cummins stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Cummins shares will generate the highest return on investment. By understating and applying Cummins stock market price indicators, traders can identify Cummins position entry and exit signals to maximize returns.
Cummins Return and Market Media
The median price of Cummins for the period between Sat, Dec 14, 2024 and Fri, Mar 14, 2025 is 360.47 with a coefficient of variation of 3.69. The daily time series for the period is distributed with a sample standard deviation of 13.23, arithmetic mean of 358.76, and mean deviation of 10.36. The Stock received substential amount of media coverage during this period. Price Growth (%) |
| Timeline |
1 | Disposition of tradable shares by Jennifer Rumsey of Cummins at 348.84 subject to Rule 16b-3 | 01/27/2025 |
2 | GMG Unveils G Lubricant Engine Performance Testing Results A Transformative Graphene Energy Saving Solution for the Multi Trillion Dollar Global Liquid Fuel Ind... | 02/24/2025 |
3 | Cummins HELM Platforms Driving Efficiency and Reducing Emissions Across Multiple Fuel Options | 02/28/2025 |
4 | The Time Is Now Womens Health Coalition Unpacks Five Ways for Employers to Address Womens Health | 03/04/2025 |
5 | 629 Shares in Cummins Inc. Acquired by Norden Group LLC | 03/05/2025 |
| Cummins dividend paid on 6th of March 2025 | 03/06/2025 |
7 | Cummins Inc. Among the Best Cheap Energy Stocks to Invest In Now | 03/07/2025 |
8 | Callan Family Office LLC Takes 463,000 Position in Cummins Inc. | 03/10/2025 |
9 | North Americas Class 8 Truck Market Faces Decline Amid Uncertainty | 03/11/2025 |
10 | Promising Hydrogen Stocks To Watch Today March 13th | 03/13/2025 |
About Cummins Beta and Alpha
For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Cummins or other stocks. Alpha measures the amount that position in Cummins has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
| 2022 | 2023 | 2024 | 2025 (projected) | Dividend Yield | 0.0249 | 0.0271 | 0.02 | 0.0279 | Price To Sales Ratio | 1.22 | 1.0 | 1.42 | 1.49 |
Cummins Upcoming Company Events
As portrayed in its financial statements, the presentation of Cummins' financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Cummins' leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Cummins' public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Cummins. Please utilize our Beneish M Score to check the likelihood of Cummins' management manipulating its earnings.
| 6th of February 2024 Upcoming Quarterly Report | View | |
| 7th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 6th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Build Portfolio with Cummins
Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.Build Diversified Portfolios
Align your risk with return expectations
Check out Cummins Backtesting, Cummins Valuation, Cummins Correlation, Cummins Hype Analysis, Cummins Volatility, Cummins History and analyze Cummins Performance. For more detail on how to invest in Cummins Stock please use our How to Invest in Cummins guide.You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
Cummins technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.