Back to top

Image: Bigstock

Paccar (PCAR) Laps the Stock Market: Here's Why

Read MoreHide Full Article

The most recent trading session ended with Paccar (PCAR - Free Report) standing at $94.97, reflecting a +1.84% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily gain of 1.16%. At the same time, the Dow added 1.2%, and the tech-heavy Nasdaq gained 1.16%.

The truck maker's stock has climbed by 0.42% in the past month, falling short of the Auto-Tires-Trucks sector's gain of 4.18% and the S&P 500's gain of 3.48%.

Market participants will be closely following the financial results of Paccar in its upcoming release. The company plans to announce its earnings on October 22, 2024. It is anticipated that the company will report an EPS of $1.82, marking a 22.22% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.56 billion, indicating an 8.13% decrease compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $8.08 per share and revenue of $31.84 billion, which would represent changes of -15.92% and -4.44%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Paccar. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, the Zacks Consensus EPS estimate has moved 0.1% higher. Currently, Paccar is carrying a Zacks Rank of #3 (Hold).

Digging into valuation, Paccar currently has a Forward P/E ratio of 11.54. Its industry sports an average Forward P/E of 12.63, so one might conclude that Paccar is trading at a discount comparatively.

Meanwhile, PCAR's PEG ratio is currently 1.44. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Automotive - Domestic industry stood at 1.39 at the close of the market yesterday.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


PACCAR Inc. (PCAR) - free report >>

Published in