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Paccar (PCAR) Gains As Market Dips: What You Should Know

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Paccar (PCAR - Free Report) ended the recent trading session at $94.53, demonstrating a +0.18% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 0.6%. Elsewhere, the Dow saw a downswing of 0.39%, while the tech-heavy Nasdaq depreciated by 1.12%.

The truck maker's shares have seen a decrease of 2.77% over the last month, surpassing the Auto-Tires-Trucks sector's loss of 3.07% and falling behind the S&P 500's gain of 3.15%.

The investment community will be paying close attention to the earnings performance of Paccar in its upcoming release. The company's earnings per share (EPS) are projected to be $1.82, reflecting a 22.22% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $7.56 billion, down 8.13% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.08 per share and a revenue of $31.84 billion, representing changes of -15.92% and -4.44%, respectively, from the prior year.

Any recent changes to analyst estimates for Paccar should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.28% decrease. Right now, Paccar possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, Paccar is currently exchanging hands at a Forward P/E ratio of 11.68. This expresses a discount compared to the average Forward P/E of 12.96 of its industry.

Investors should also note that PCAR has a PEG ratio of 1.46 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Domestic industry had an average PEG ratio of 1.34 as trading concluded yesterday.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 141, placing it within the bottom 45% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual 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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