- The S&P is red hot once again, soaring 5.5% in just three days. But Buffett-style "fat pitch" bargains are still plentiful if you know where to look.
- I've bought Cummins several times in this correction, during its 30% bear market.
- This blue-chip quality and safety are in the top 7% of the world's greatest companies, and its trading at just 11.3X earnings, and 8.3X cash-adjusted earnings.
- Cummins is priced for very little growth, but analysts expect 12.1% long-term growth, driven by its industry leading positioning in electric drivetrains.
- CMI is about 18% undervalued, and analysts expect 32% total returns in just the next 12 months. Over the next five years, CMI could deliver about 120% total returns, more than 3X better than the S&P. And over the long-term 15% annual returns are possible, the same as CMI has delivered for the last three decades.
For further details see:
3 Reasons Cummins Is A Classic Buffett-Style 'Fat Pitch' Blue-Chip Bargain