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CMI vs ETN
Which Stock Would AI Choose? Cummins Inc. (CMI) vs. Eaton Corporation plc (ETN) Stock Comparison
Key Takeaways
- Both CMI and ETN are industrial powerhouses riding strong secular demand from AI data centers, grid modernization, and reindustrialization, giving each a durable multi-year growth narrative.
- CMI has seen broad analyst target increases on rebounding North American truck demand and data-center power orders extending toward 2028, reinforcing a consistent uptrend.
- ETN posted record 2025 results and is restructuring toward higher-margin electrical and aerospace businesses, though some analysts cite limited near-term earnings revision upside.
- Tickeron AI Verdict: Based on trend consistency, catalyst momentum, and relative positioning, Tickeron's AI currently favors CMI over ETN in this pairing.
- For more details on each company, explore CMI Major News and CMI Today's Price Move, as well as ETN Major News and ETN Today's Price Move.
- To see which automated strategies are currently best positioned, explore Trending AI Robots.
Introduction
Industrial names with exposure to electrification, power infrastructure, and artificial intelligence data centers have become central to market debates. CMI (Cummins Inc.) and ETN (Eaton Corporation plc) both operate at the intersection of these themes, yet they generate earnings through different business models and face distinct catalysts and risks. This stock comparison is relevant for investors and traders evaluating how two high-quality, data-center-linked industrials stack up on relative performance, market positioning, and near-term momentum. By examining recent developments, sentiment shifts, and structural growth drivers, readers can better assess which name may offer a more compelling risk-reward profile in the current environment.
CMI Overview and Recent Performance
Cummins Inc. designs and manufactures engines, power systems, filtration, and related components serving commercial trucks, off-highway equipment, locomotives, and standby and prime power generators. In recent weeks, the stock has benefited from a firmer North American truck outlook and, critically, accelerating data-center power demand, with company commentary indicating orders stretching toward 2028. Multiple analysts have raised price targets, reflecting improved visibility into both the engine cycle and the power solutions business. The stock has remained within a broader uptrend, supported by steady demand and an established dividend history. Sentiment has been constructive, though some notes have cautioned that valuation already reflects much of the near-term optimism.
ETN Overview and Recent Performance
Eaton Corporation plc is a diversified power management company whose electrical segment accounts for roughly 70% of revenue, supplying components to data centers, utilities, and commercial and residential buildings, with an industrial segment focused on vehicle and aerospace systems. The company reported record full-year 2025 sales and earnings per share (EPS), driven by strong Electrical Americas growth and a healthy backlog. In recent weeks, Eaton announced plans to divest its underperforming Vehicle and eMobility operations to focus on AI-driven electrical systems and aerospace and defense, while also pursuing large acquisitions. Sentiment has been mixed: some firms upgraded the stock, while others downgraded it, citing limited near-term upside to estimates and potential margin pressure from capacity expansion.
Trending AI Robots
Tickeron operates a marketplace of hundreds of AI trading bots that monitor and trade thousands of different tickers, each with its own trading style, strategy, timeframe, performance history, and set of securities. Because market conditions shift constantly, not every bot is equally well suited at any given moment. Tickeron's Trending AI Robots page curates only the strategies currently best aligned with prevailing market conditions, helping traders filter a broad universe down to the most relevant automated approaches. Whether you are comparing names like CMI and ETN or seeking broader market exposure, reviewing these curated bots can offer a useful, data-driven starting point for your own analysis.
Head-to-Head Comparison
Although both companies benefit from electrification and data-center buildouts, their core engines differ. CMI is more directly tied to the commercial truck cycle and engine manufacturing, balanced by a growing power systems segment that supplies generators to data centers. ETN is weighted toward electrical equipment and power distribution, with a rising aerospace and defense tilt. On recent momentum, CMI has enjoyed relatively consistent analyst target increases, while ETN faces a more divided analyst view amid a portfolio restructuring and capacity-driven margin concerns. Risk profiles also differ: CMI carries truck-cycle cyclicality, whereas Eaton carries execution risk around large acquisitions and divestitures. In market positioning, Eaton commands a larger market capitalization and premium valuation, while Cummins trades at a comparatively lower price-to-earnings (P/E) multiple.
Tickeron AI Verdict
Based on observable factors such as trend consistency, catalyst momentum, and relative positioning, Tickeron's AI would currently lean toward CMI in this comparison. The stock's sustained uptrend, broad-based analyst target increases, and extended data-center power order visibility present a comparatively steadier setup, whereas ETN is navigating a more mixed analyst backdrop and near-term margin considerations tied to its restructuring. This assessment is probabilistic rather than definitive and reflects current conditions, which can shift as new earnings data and market developments emerge.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is CMI is a Hold and ETN is a Hold.
CMI's RSI Oscillator recovers from oversold territory
The RSI Oscillator for CMI moved out of oversold territory on September 29, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 21 similar instances when the indicator left oversold territory. In 16 of the 21 cases the stock moved higher. This puts the odds of a move higher at 76%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a +0.12% 3-day Advance, the price is estimated to grow further. Considering data from situations where CMI advanced for three days, in 218 of 334 cases, the price rose further within the following month. The odds of a continued upward trend are 65%.
CMI may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 182 of 309 cases where CMI Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 59%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 29, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on CMI as a result. In 54 of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 64%.
The Moving Average Convergence Divergence Histogram (MACD) for CMI turned negative on October 30, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In 30 of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at 62%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CMI declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 57%.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 21 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 35 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock slightly better than average.
The Tickeron SMR rating for this company is 44 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 62 (best 1 - 100 worst), indicating steady price growth. CMI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 70 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.364) is normal, around the industry mean (4.171). P/E Ratio (25.476) is within average values for comparable stocks, (39.205). Projected Growth (PEG Ratio) (1.044) is also within normal values, averaging (1.879). Dividend Yield (0.018) settles around the average of (0.031) among similar stocks. P/S Ratio (2.110) is also within normal values, averaging (186.943).
ETN in upward trend: price may jump up because it broke its lower Bollinger Band on October 14, 2026
ETN may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 32 of 40 cases where ETN's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 80%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where ETN's RSI Indicator exited the oversold zone, 17 of 23 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 74%.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 36 of 53 cases where ETN's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 68%.
The Momentum Indicator moved above the 0 level on November 03, 2026. You may want to consider a long position or call options on ETN as a result. In 60 of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 72%.
Following a +2.48% 3-day Advance, the price is estimated to grow further. Considering data from situations where ETN advanced for three days, in 224 of 337 cases, the price rose further within the following month. The odds of a continued upward trend are 66%.
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for ETN turned negative on October 08, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 53 similar instances when the indicator turned negative. In 32 of the 53 cases the stock turned lower in the days that followed. This puts the odds of success at 60%.
ETN moved below its 50-day moving average on October 14, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for ETN crossed bearishly below the 50-day moving average on October 16, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 12 of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 75%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ETN declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 55%.
The Aroon Indicator for ETN entered a downward trend on November 03, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 19 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock better than average.
The Tickeron SMR rating for this company is 47 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 53 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 63 (best 1 - 100 worst), indicating steady price growth. ETN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 86 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.511) is normal, around the industry mean (4.171). P/E Ratio (39.766) is within average values for comparable stocks, (39.205). Projected Growth (PEG Ratio) (2.622) is also within normal values, averaging (1.879). Dividend Yield (0.011) settles around the average of (0.031) among similar stocks. P/S Ratio (5.163) is also within normal values, averaging (186.943).
CMI | ETN | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 31 | 11 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 70 Overvalued | 86 Overvalued | |
PROFIT vs RISK RATING 1..100 | 35 | 19 | |
SMR RATING 1..100 | 44 | 47 | |
PRICE GROWTH RATING 1..100 | 62 | 63 | |
P/E GROWTH RATING 1..100 | 21 | 53 | |
SEASONALITY SCORE 1..100 | n/a | 65 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
CMI's Valuation (70) in the Trucks Or Construction Or Farm Machinery industry is in the same range as ETN (86) in the Electrical Products industry. This means that CMI’s stock grew similarly to ETN’s over the last 12 months.
ETN's Profit vs Risk Rating (19) in the Electrical Products industry is in the same range as CMI (35) in the Trucks Or Construction Or Farm Machinery industry. This means that ETN’s stock grew similarly to CMI’s over the last 12 months.
CMI's SMR Rating (44) in the Trucks Or Construction Or Farm Machinery industry is in the same range as ETN (47) in the Electrical Products industry. This means that CMI’s stock grew similarly to ETN’s over the last 12 months.
CMI's Price Growth Rating (62) in the Trucks Or Construction Or Farm Machinery industry is in the same range as ETN (63) in the Electrical Products industry. This means that CMI’s stock grew similarly to ETN’s over the last 12 months.
CMI's P/E Growth Rating (21) in the Trucks Or Construction Or Farm Machinery industry is in the same range as ETN (53) in the Electrical Products industry. This means that CMI’s stock grew similarly to ETN’s over the last 12 months.
| CMI | ETN | |
|---|---|---|
| RSI ODDS (%) | 6 days ago 76% | 1 day ago 74% |
| Stochastic ODDS (%) | 1 day ago 63% | 1 day ago 68% |
| Momentum ODDS (%) | 1 day ago 64% | 1 day ago 72% |
| MACD ODDS (%) | 1 day ago 63% | 1 day ago 60% |
| TrendWeek ODDS (%) | 1 day ago 58% | 1 day ago 69% |
| TrendMonth ODDS (%) | 1 day ago 59% | 1 day ago 68% |
| Advances ODDS (%) | 1 day ago 65% | 6 days ago 66% |
| Declines ODDS (%) | 5 days ago 57% | 2 days ago 55% |
| BollingerBands ODDS (%) | 1 day ago 66% | 1 day ago 80% |
| Aroon ODDS (%) | 1 day ago 59% | 1 day ago 67% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
CMI’s FA Score shows that 1 FA rating(s) are green while ETN’s FA Score has 1 green FA rating(s).
- CMI’s FA Score: 1 green, 4 red.
- ETN’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
CMI’s TA Score shows that 5 TA indicator(s) are bullish while ETN’s TA Score has 5 bullish TA indicator(s).
- CMI’s TA Score: 5 bullish, 3 bearish.
- ETN’s TA Score: 5 bullish, 5 bearish.
Price Growth
CMI (@Industrial Machinery) experienced а -5.64% price change this week, while ETN (@Industrial Machinery) price change was +1.95% for the same time period.
The average weekly price growth across all stocks in the @Industrial Machinery industry was +1.87%. For the same industry, the average monthly price growth was -12.26%, and the average quarterly price growth was -18.53%.
Reported Earning Dates
CMI is expected to report earnings on Nov 05, 2026.
ETN is expected to report earnings on Jan 29, 2027.
Industries' Descriptions
@Industrial Machinery (+1.87% weekly)The industry makes and maintains machines for consumers, the industry, and most other companies. While it has traditionally been categorized as heavy industry, some smaller companies are also branching into the light category. The industry is pivotal in providing the equipment for production in businesses like agriculture, mining, industry and construction, gas, electricity and water utilities. It also supplies supporting equipment for almost all sectors of the economy, such as equipment for heating, and air conditioning of buildings. Illinois Tool Works Inc., Parker-Hannifin Corporation and Rockwell Automation Inc are some of the major U.S. companies operating in this industry.
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CMI and
Correlation & Price change
A.I.dvisor indicates that over the last year, CMI has been closely correlated with ETN. These tickers have moved in lockstep 72% of the time. This A.I.-generated data suggests there is a high statistical probability that if CMI jumps, then ETN could also see price increases.