Cummins: Earnings Beat On The Way

Cummins is positioned for a Q1 earnings beat, with strong Power and Distribution segments offsetting heavy truck market weakness. CMI guides for 3–8% revenue growth and 17–18% EBITDA margin, with analyst day potentially raising multi-year margin targets. Despite a 26% YTD rally, CMI's valuation at 24.9x forward P/E still offers upside, especially if margins improve at analyst day.