Is Cummins Undervalued Right Now?

Leading truck engine maker Cummins (NYSE: CMI) has driven decent long-term returns for investors. Over the last three years, the stock has outperformed the S&P 500's 55% gain, rising 67%.

Yet Cummins has lost traction in 2021 because of the computer chip shortage that has impacted all vehicle manufacturers and most other industries. Shares trail the index by nearly 16 percentage points year to date. With the stock down 13% from the all-time high hit back in March, the engine maker appears undervalued given how it should perform in the years ahead. Here's why.

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Source Fool.com