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

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Paccar (PCAR - Free Report) closed the most recent trading day at $94.82, moving -0.97% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.15%. Elsewhere, the Dow saw a downswing of 0.42%, while the tech-heavy Nasdaq appreciated by 0.09%.

Coming into today, shares of the truck maker had lost 2.23% in the past month. In that same time, the Auto-Tires-Trucks sector gained 2.96%, while the S&P 500 gained 3.5%.

The upcoming earnings release of Paccar will be of great interest to investors. The company's earnings report is expected on January 23, 2024. The company's upcoming EPS is projected at $2.12, signifying a 20.45% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.26 billion, up 6.74% from the year-ago period.

Any recent changes to analyst estimates for Paccar should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 witnessed a 0.79% increase. Right now, Paccar possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Paccar is presently being traded at a Forward P/E ratio of 12.85. This expresses a premium compared to the average Forward P/E of 11.55 of its industry.

One should further note that PCAR currently holds a PEG ratio of 1.29. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Automotive - Domestic industry held an average PEG ratio of 1.29.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 42% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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