Columbus, Indiana-based Cummins Inc. (CMI) offers complementary business segments that design, manufacture, distribute, and service a portfolio of power solutions. Valued at a market cap of $46.4 billion, the company operates through Engine, Distribution, Components, Power Systems, and Accelera segments.

Shares of CMI have outpaced the broader market over the past 52 weeks. CMI stock has soared 16.4% over this period, while the broader S&P 500 Index ($SPX) has gained 11.9%. However, shares of CMI are down 4.9% on a YTD basis, underperforming SPX’s 1% uptick during the same time frame.

Zooming in further, Cummins has also outperformed the Industrial Select Sector SPDR Fund’s (XLI) 14.5% surge over the past year, but significantly underperformed XLI's 9.1% returns on a YTD basis.

Cummins' stock prices rose marginally following the release of its better-than-expected Q1 2025 results on May 5. The company reported sales of $8.2 billion, down 2.7% year-over-year, but above the Wall Street expectations of $8.1 billion. The solid performance of Cummins' Power Systems, Distribution, and Accelera segments was outweighed by sales declines in the Components and Engine segments, leading to the overall drop in revenue. Meanwhile, its EPS came in at $5.96, down 57.5% compared to $14.03 reported in the prior-year quarter. However, this figure surpassed the consensus estimates by 23.7%.

For the current fiscal year 2025, ending in December, analysts expect CMI's EPS to decline nearly 2.1% year-over-year to $20.93. However, it has a solid earnings surprise history. CMI surpassed the Street's bottom-line estimates for each of the past four quarters.

Among the 18 analysts covering the CMI stock, the consensus rating is a “Moderate Buy.” That’s based on five “Strong Buy” ratings, 12 “Holds,” and one “Strong Sell.”

This configuration is slightly less bullish than two months ago, with six “Strong Buy” ratings on the stock.

On May 19, Evercore ISI analyst David Raso lowered CMI’s price target to $419 while maintaining an “Outperform” rating on the stock.

As of writing, Cummins’ mean price target of $345.07 implies a modest 4.1% premium to current price levels, while the Street-high target of $451 suggests a staggering 36% upside potential.