I believe Cummins Inc. (NYSE:CMI) has a very intriguing catalyst, although unlike GM’s short-term catalysts, it’s for a long-term investor. Cummins is uniquely positioned with its brand name and industry-leading engines to take advantage of the natural gas boom. Millions of 18-wheelers across the trucking industry are going to be enticed to switch and run on natural gas engines. It sounds radical, but it’s actually really logical. Liquefied natural gas, or LNG, has been proven to be a cheaper, cleaner fuel – and it’s abundant right here in the U.S. As traditional fuel costs and emission standards rise, the switch could happen sooner rather than later.
Cummins Inc. (NYSE:CMI) is developing its own natural gas engines, and in April it began shipping a large LNG engine that can make long-haul trucking a real possibility. Cummins Inc. (NYSE:CMI) also has a joint venture with Westport Innovations (NASDAQ:WPRT) which specializes in building natural gas engines. There’s room for both in the market, and together they will set the bar very high for competitors looking to get a piece of the growing pie. If truck fleets begin to switch to LNG engines it will pay off handsomely for Cummins and its investors.
There’s a lot to like about both of these companies in terms of value and sustainable profits. Both have future catalysts that could significantly boost stock prices and handsomely reward long-term investors. If you’re looking for investments that have been left behind in the stock market’s rally, look no further, these could be two stocks to buy now.
The article 2 Stocks to Buy Now originally appeared on Fool.com.
Fool contributor Daniel Miller owns shares of General Motors and Westport Innovations. The Motley Fool recommends Cummins, General Motors, and Westport Innovations. The Motley Fool owns shares of Cummins and Westport Innovations.
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