Why Cummins Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, diesel engine manufacturer Cummins (NYSE: CMI  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Cummins and see what CAPS investors are saying about the stock right now.

Cummins facts

Headquarters (founded)	Columbus, Ind. (1919)
Market Cap	$21.9 billion
Industry	Diversified machinery
Trailing-12-Month Revenue	$16.8 billion
Management	Chairman/CEO Thomas Linebarger CFO Patrick Ward
Return on Equity (average, past 3 years)	29.3%
Cash/Debt	$1.7 billion / $803.0 million
Dividend Yield	1.7%
Competitors	Caterpillar Navistar International

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 1,706 members who have rated Cummins believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, yomanlyman, succinctly summed up the Cummins bull case for our community:

I like that the company is well regarded by its industry and its competitors. It is recognized for its focus on sustainability, community and is well positioned if a natural gas transportation infrastructure is built out in the United States. One of its competitor's, Navistar, was forced to subcontract out to Cummins to meet more stringent EPA requirements on it engines. The company is riding out an international recession, but should profit if companies worldwide begin to spend again on more efficient and sustainable machinery.   

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