Cummins Inc. : The stock is getting oversold
By Florian Girard
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$135.57 | $0 | $130 | -100% |
The firm enjoy a good Surperformance rating that underline the earnings quality, the business predictability. Financial forecasts are encouraging, the net income should rise about 8%. The current valuation shows a +12% potential to reach the consensus average target price.
The value, currently oversold, evolves within a downtrend in the medium term. In the short term, this trend could be reversed as it approaches the USD 135 level from which the bullish run could start a wide-range movement. This threshold is strengthen by the close USD 133.8 support. The present prices area represents a buying opportunity in the context of a foreseeable technical rebound.
Thus, investors may buy the stock at current prices and target the USD 145 pivot point. A stop loss order should be set at USD 130.