AutoZone vs Cummins
AutoZone vs Cummins: this page compares business models, financial performance, and market context to help readers understand how the companies operate within their sectors. The analysis is neutral and accessible, presenting context without opinion or recommendation. Educational content, not financial advice.
AutoZone vs Cummins: this page compares business models, financial performance, and market context to help readers understand how the companies operate within their sectors. The analysis is neutral an...
Why It's Moving
AutoZone SVP's $21.8M Share Sale Sparks Investor Scrutiny Amid Recent Margin Pressures.
- SVP Richard Craig Smith exercised options at $587/share and sold 5,910 shares at $3,700 apiece on Jan 23, reducing his direct holdings to 2,627 shares.
- Institutional tweaks include Truist Financial cutting its stake by 17.3% in Q3 to a $20.4M position, alongside smaller sales by Krilogy and New York State fund.
- Analysts adjusted targets lower—Morgan Stanley to $4,000, UBS to $4,325—citing elevated SG&A spending and gross margin hits, yet consensus stays at Moderate Buy.
Cummins gears up for pivotal Q4 earnings as analysts hike targets amid mixed segment outlooks.
- Wells Fargo raised its price target to $630 from $599 with an 'overweight' rating last week, joining Truist ($653) and Citi ($630) in boosting expectations.
- Consensus points to Power Systems net sales jumping 14.5% year-over-year to $2 billion, while Distribution edges up 3%, highlighting resilient demand in key areas.
- Upcoming earnings carry a Zacks Rank #3 (Hold) with a slight Earnings ESP miss, but CMI's history of beating estimates by 20% on average keeps investors optimistic.
AutoZone SVP's $21.8M Share Sale Sparks Investor Scrutiny Amid Recent Margin Pressures.
- SVP Richard Craig Smith exercised options at $587/share and sold 5,910 shares at $3,700 apiece on Jan 23, reducing his direct holdings to 2,627 shares.
- Institutional tweaks include Truist Financial cutting its stake by 17.3% in Q3 to a $20.4M position, alongside smaller sales by Krilogy and New York State fund.
- Analysts adjusted targets lower—Morgan Stanley to $4,000, UBS to $4,325—citing elevated SG&A spending and gross margin hits, yet consensus stays at Moderate Buy.
Cummins gears up for pivotal Q4 earnings as analysts hike targets amid mixed segment outlooks.
- Wells Fargo raised its price target to $630 from $599 with an 'overweight' rating last week, joining Truist ($653) and Citi ($630) in boosting expectations.
- Consensus points to Power Systems net sales jumping 14.5% year-over-year to $2 billion, while Distribution edges up 3%, highlighting resilient demand in key areas.
- Upcoming earnings carry a Zacks Rank #3 (Hold) with a slight Earnings ESP miss, but CMI's history of beating estimates by 20% on average keeps investors optimistic.
Investment Analysis
AutoZone
AZO
Pros
- AutoZone maintains a dominant market position with over 6,800 stores across the US, Mexico, and Brazil, supporting strong brand recognition and customer reach.
- The company has demonstrated consistent revenue growth, with fiscal 2025 revenues rising 2.4% year-on-year, reflecting resilience in both DIY and DIFM segments.
- AutoZone's robust share repurchase programme signals management confidence and provides potential for increased shareholder value despite market volatility.
Considerations
- AutoZone's net margin remains relatively low, suggesting ongoing challenges in converting revenue growth into sustainable profitability.
- The company's balance sheet is stretched, with a debt-to-capital ratio significantly above industry average, increasing financial risk in a rising rate environment.
- Negative return on equity and recent earnings misses raise concerns about the company's ability to generate returns from shareholder capital.
Cummins
CMI
Pros
- Cummins holds a leading global position in engine and power solutions, benefiting from diversified end markets and strong brand reputation.
- The company has made significant investments in alternative fuel and electrification technologies, positioning it for long-term growth in a shifting energy landscape.
- Cummins maintains a solid balance sheet with healthy liquidity, enabling it to weather cyclical downturns and fund strategic initiatives.
Considerations
- Cummins' earnings are highly sensitive to global economic cycles and commodity prices, exposing it to volatility in demand for heavy-duty equipment.
- Regulatory pressures and the transition to zero-emission technologies present execution risks and could require substantial capital investment.
- The company faces increasing competition from new entrants in the electrification space, which may erode margins and market share over time.
Related Market Insights
America's Auto Shield: Why Tariffs Are Creating Domestic Winners
Discover how US tariffs on imported vehicles are boosting domestic automakers & suppliers. Explore the 'US Auto Tariff Shield' Neme on Nemo for investment opportunities.
Aimee Silverwood | Financial Analyst
July 20, 2025
Related Market Insights
America's Auto Shield: Why Tariffs Are Creating Domestic Winners
Discover how US tariffs on imported vehicles are boosting domestic automakers & suppliers. Explore the 'US Auto Tariff Shield' Neme on Nemo for investment opportunities.
Aimee Silverwood | Financial Analyst
July 20, 2025
AutoZone (AZO) Next Earnings Date
AutoZone's next earnings report is scheduled for March 3, 2026, where the company will discuss Q2 2026 financial results. The earnings call will provide executives' commentary on quarterly performance and forward guidance. Current EPS estimates for this quarter stand at approximately $27.36, based on analyst consensus projections.
Cummins (CMI) Next Earnings Date
Cummins Inc. (CMI) is scheduled to report its next earnings on February 5, 2026, with a conference call at 10:00 a.m. EST. This release will cover the Q4 and full-year 2025 results. The date aligns with the company's investor relations calendar and consensus analyst estimates.
AutoZone (AZO) Next Earnings Date
AutoZone's next earnings report is scheduled for March 3, 2026, where the company will discuss Q2 2026 financial results. The earnings call will provide executives' commentary on quarterly performance and forward guidance. Current EPS estimates for this quarter stand at approximately $27.36, based on analyst consensus projections.
Cummins (CMI) Next Earnings Date
Cummins Inc. (CMI) is scheduled to report its next earnings on February 5, 2026, with a conference call at 10:00 a.m. EST. This release will cover the Q4 and full-year 2025 results. The date aligns with the company's investor relations calendar and consensus analyst estimates.
Which Baskets Do They Appear In?
U.S. Auto Tariff Shield: Domestic Winners
This carefully selected group of stocks represents American automotive companies positioned to benefit from U.S. tariffs on imported vehicles. These domestic manufacturers and suppliers have a competitive pricing advantage that could lead to increased market share and profits.
Published: July 20, 2025
Explore BasketWhich Baskets Do They Appear In?
U.S. Auto Tariff Shield: Domestic Winners
This carefully selected group of stocks represents American automotive companies positioned to benefit from U.S. tariffs on imported vehicles. These domestic manufacturers and suppliers have a competitive pricing advantage that could lead to increased market share and profits.
Published: July 20, 2025
Explore BasketBuy AZO or CMI in Nemo
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