How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Cummins (CMI) ten years ago? It may not have been easy to hold on to CMI for all that time, but if you did, how much would your investment be worth today?
Cummins' Business In-Depth
With that in mind, let's take a look at Cummins' main business drivers.
Cummins Inc. is a leading global designer, manufacturer and distributor of diesel and natural gas engines and powertrain-related component products. Powertrain components include fuel systems, turbochargers, transmissions, batteries and electrified power systems, among others. Headquartered in Columbus, IN, the company offers products to original equipment manufacturers (OEMs), distributors and dealers through a network of roughly 650 company-owned and independent distributor facilities in over 19,000 dealer locations in more than 190 countries and territories.
The acquisition of Meritor in 2022 has enhanced CMI position as a top provider of integrated powertrain solutions for both internal combustion and electric vehicles. This deal expanded Cummins’ components business, opening up new growth avenues.
Cummins has the following five operating segments:
The Engine segment (26.4% of consolidated net sales in 2024) produces diesel and natural gas-based engines for on-highway and industrial markets. The engines are used in heavy and medium-duty trucks, buses, recreational vehicles, and various industrial applications in the construction, mining, agriculture, marine, oil and gas, rail, defense and agricultural markets.
The Distribution segment (33.3%) is the company’s primary sales, service and support channel. It operates through a worldwide network of wholly owned, joint venture and independent distribution locations that offer a varied range of products and services, including power generation systems, high-horsepower engines, and heavy-duty and medium-duty engines.
The Components segment (29%) has five businesses, namely, Emission solutions, Turbo technologies, Electronics and fuel systems, and Automated transmissions.
The Power Systems segment (10.3%) sells power generators, diesel and natural gas high-horsepower engines, and AC generator or alternator products for internal consumption and external generator set assemblers. The unit houses the Power Generation, Industrial and Generator Technologies product lines.
The Accelera segment (1%) designs, manufactures, sells and supports hydrogen production systems as well as electrified power systems ranging from fully electric to hybrid along with innovative components and subsystems.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Cummins, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in November 2015 would be worth $4,787.34, or a gain of 378.73%, as of November 24, 2025, and this return excludes dividends but includes price increases.
The S&P 500 rose 216.06% and the price of gold increased 263.58% over the same time frame in comparison.
Going forward, analysts are expecting more upside for CMI.
Cummins isseeing strong growth in its Distribution and Power Systems segments. Rising demand from data centers and mission-critical applications is driving these gains.It is advancing its long-term growth and decarbonization goals throughstrategic investments in clean energy technologies. Recent collaboration with Komatsu to develop hybrid powertrains is expected to reduce operating costs. However, Cummins faces headwinds fromweakening North America heavy- and medium-duty truck demand, pressuring Engine segment revenues and profits. Persistent losses in the Accelera unitplays a spoilsport. Tariffsare adding cost pressures and uncertainty for the company. Rising debt levelsare also raising concerns. The stock warrants a cautious stance for the time being.
Over the past four weeks, shares have rallied 12.11%, and there have been 4 higher earnings estimate revisions in the past two months for fiscal 2025 compared to none lower. The consensus estimate has moved up as well.
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Cummins Inc. (CMI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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