Is Cummins Stock Outperforming the Dow?

With a market cap of $55.8 billion, Cummins Inc. (CMI) is a global leader in designing, manufacturing, and distributing engines and power solutions. The company operates through five segments: Engine; Distribution; Components; Power Systems; and Accelera, offering products that range from diesel and natural gas engines to electrified power systems and hydrogen technologies. 

Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Cummins fits this criterion perfectly. Serving OEMs, distributors, and dealers worldwide, Cummins delivers innovative solutions across transportation, industrial, and energy markets.

Shares of the Columbus, Indiana-based company have decreased marginally from its 52-week high of $413.52. Over the past three months, its shares have surged 27.2%, outperforming the broader Dow Jones Industrials Average's ($DOWI) 7.5% gain during the same period.

Longer term, CMI stock is up 18.1% on a YTD basis, outpacing DOWI's 8.3% return. Moreover, shares of the company have climbed 40.3% over the past 52 weeks, compared to DOWI’s 12.7% increase over the same time frame.

The stock has been trading above its 50-day moving average since early May and has remained above its 200-day moving average since early July.

Shares of Cummins rose 3.2% on Aug. 5 after the company reported Q2 2025 earnings of $6.43 per share and revenue of $8.6 billion, beating the analyst estimates. Growth was driven by a 19% increase in its Power Systems segment to $1.89 billion, fueled by strong demand for power generation products, particularly from AI-driven data center investments.

Additionally, CMI stock has performed better than its rival, AMETEK, Inc. (AME). AME stock has increased 5.5% YTD and 15.1% over the past 52 weeks.

Despite Cummins’s outperformance, analysts remain cautiously optimistic about its prospects. CMI stock has a consensus rating of “Moderate Buy” from 21 analysts in coverage, and the mean price target of $415.06 is a slight premium to current levels.