Cummins Inc. : The stock is getting oversold
Entry price | Target | Stop-loss | Potential |
---|
$135.57 |
$0 |
$130 |
-100% |
---|
Cummins share price was heavily penalized and is now in an oversold situation near to a solid support area.
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.
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