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Paccar (PCAR) Increases Despite Market Slip: Here's What You Need to Know

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Paccar (PCAR - Free Report) closed the latest trading day at $111.37, indicating a +0.04% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily loss of 0.17%. Elsewhere, the Dow lost 0.06%, while the tech-heavy Nasdaq lost 0.55%.

The truck maker's shares have seen an increase of 9.18% over the last month, not keeping up with the Auto-Tires-Trucks sector's gain of 11.99% and outstripping the S&P 500's gain of 3.98%.

Market participants will be closely following the financial results of Paccar in its upcoming release. The company's earnings per share (EPS) are projected to be $2.13, reflecting a 5.33% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $8.07 billion, reflecting a 0.26% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $8.08 per share and revenue of $32.16 billion, which would represent changes of -15.92% and -3.48%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Paccar. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.41% higher. Paccar is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note Paccar's current valuation metrics, including its Forward P/E ratio of 13.78. Its industry sports an average Forward P/E of 13.78, so one might conclude that Paccar is trading at no noticeable deviation comparatively.

It's also important to note that PCAR currently trades at a PEG ratio of 1.75. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Automotive - Domestic industry was having an average PEG ratio of 1.75.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 153, finds itself in the bottom 40% echelons of all 250+ industries.

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

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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