CMI

Cummins Inc. Industrials - Engines Investor Relations →

NO
102.6% ABOVE
↓ Approaching Was 104.4% last week
-15% -10% -5% 0% 5% 10% 15%+
Buy Threshold $285.16
14-Week RSI 88

Cummins Inc. (CMI) closed at $577.73 as of 2026-02-02, trading 102.6% above its 200-week moving average of $285.16. The stock is currently moving closer to the line, down from 104.4% last week. With a 14-week RSI of 88, CMI is in overbought territory.

Over the past 2715 weeks of data, CMI has crossed below its 200-week moving average 32 times. On average, these episodes lasted 25 weeks. Historically, investors who bought CMI at the start of these episodes saw an average one-year return of +14.8%.

With a market cap of $79.8 billion, CMI is a large-cap stock. Free cash flow yield is currently negative, meaning the company is burning cash. Return on equity stands at 23.9%, indicating strong profitability. The stock trades at 6.5x book value.

Over the past 33.2 years, a hypothetical investment of $100 in CMI would have grown to $12184, compared to $2849 for the S&P 500. That represents an annualized return of 15.6% vs 10.6% for the index — confirming CMI as a market-beating investment and the kind of quality company where buying during 200-week moving average touches has historically been rewarded.

Free cash flow has been declining at a -43.2% compound annual rate. A deteriorating cash flow trend warrants extra scrutiny — the stock may be cheap for a reason.

Growth of $100: CMI vs S&P 500

Monthly data normalized to $100 at start. Vertical dashed lines mark 200-week MA touches.

What Happens After CMI Crosses Below the Line?

Across 16 historical episodes, buying CMI when it crossed below its 200-week moving average produced an average return of +24.8% after 12 months (median +24.0%), compared to +14.9% for the S&P 500 over the same periods. 69% of those episodes were profitable after one year. After 24 months, the average return was +60.4% vs +41.5% for the index.

Each line shows $100 invested at the moment CMI crossed below its 200-week MA. Bold blue = stock average. Gray dashed = S&P 500 average over same periods.

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Historical Touches

CMI has crossed below its 200-week MA 32 times with an average 1-year return of +14.8% after recovery.

Crossed BelowRecoveredWeeksMax Depth1-Year ReturnReturn Since Touch
Jan 1974Feb 197610863.9%-48.9%+34693.8%
Feb 1978Feb 197811.9%+10.9%+38227.5%
Oct 1978Jan 19791512.4%-8.7%+37066.1%
Feb 1979Mar 197956.1%-7.0%+34448.8%
Apr 1979Apr 197910.6%-20.5%+33502.2%
Apr 1979May 197923.0%-20.1%+33387.5%
May 1979Mar 19819429.8%-18.5%+32936.5%
Oct 1981Nov 198157.7%+8.4%+34207.1%
Dec 1981Mar 1982138.4%+37.3%+34448.8%
May 1982Sep 19821724.5%+52.7%+35067.9%
Sep 1982Oct 198213.5%+95.6%+36106.1%
Jul 1986Dec 19862019.2%+51.8%+19099.9%
Oct 1987Dec 19886236.9%-25.5%+16639.8%
Mar 1989Mar 198910.3%-19.3%+17489.0%
Jul 1989Jul 198922.9%-9.3%+17719.6%
Aug 1989Oct 199111540.2%-24.4%+17205.2%
Aug 1995Aug 199510.3%+0.5%+11688.9%
Sep 1995Feb 19962313.8%+5.2%+12199.8%
Mar 1996Mar 199610.4%+37.0%+11254.2%
Mar 1996Apr 199610.0%+31.1%+11183.9%
Jun 1996Oct 1996168.8%+79.9%+11119.6%
Aug 1998Apr 19993438.6%+27.5%+9060.1%
Nov 1999May 20018042.6%-19.8%+9508.6%
Jun 2001Dec 20012925.9%-17.0%+9294.5%
Jan 2002Feb 200269.5%-21.3%+10363.8%
May 2002May 20035240.2%-3.1%+10498.9%
Oct 2008Jul 20094148.0%+51.7%+2615.4%
Aug 2015Jul 20164728.7%+9.2%+543.4%
Sep 2016Sep 201611.5%+43.3%+531.0%
Oct 2018Oct 201811.5%+43.0%+441.3%
Dec 2018Dec 201811.6%+45.6%+439.3%
Mar 2020Apr 2020419.2%+105.4%+386.4%
Average25+14.8%

Not financial advice. This is an educational tool. Past performance does not guarantee future results. Do your own research before making investment decisions.

Data as of Friday close, 2026-02-02