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Paccar (PCAR) Dips More Than Broader Market: What You Should Know

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Paccar (PCAR - Free Report) ended the recent trading session at $85.30, demonstrating a -1.59% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.63%. Elsewhere, the Dow lost 0.51%, while the tech-heavy Nasdaq lost 0.63%.

The the stock of truck maker has risen by 4.08% in the past month, leading the Auto-Tires-Trucks sector's loss of 0.98% and the S&P 500's loss of 2.35%.

Analysts and investors alike will be keeping a close eye on the performance of Paccar in its upcoming earnings disclosure. The company's earnings report is set to go public on October 24, 2023. The company's earnings per share (EPS) are projected to be $2.06, reflecting a 40.14% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $7.98 billion, showing a 19.32% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.56 per share and revenue of $32.56 billion. These totals would mark changes of +48.87% and +19.19%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Paccar. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.16% higher. Paccar is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Paccar is holding a Forward P/E ratio of 10.13. This denotes a premium relative to the industry's average Forward P/E of 9.82.

Also, we should mention that PCAR has a PEG ratio of 1.01. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Automotive - Domestic industry stood at 1.21 at the close of the market yesterday.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 167, positioning it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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