Back to top

Image: Bigstock

Paccar (PCAR) Stock Falls Amid Market Uptick: What Investors Need to Know

Read MoreHide Full Article

Paccar (PCAR - Free Report) closed the most recent trading day at $97.11, moving -1.23% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.08%. Meanwhile, the Dow experienced a rise of 0.08%, and the technology-dominated Nasdaq saw an increase of 0.52%.

Coming into today, shares of the truck maker had lost 7.65% in the past month. In that same time, the Auto-Tires-Trucks sector lost 19.95%, while the S&P 500 lost 7.33%.

The upcoming earnings release of Paccar will be of great interest to investors. The company is predicted to post an EPS of $1.59, indicating a 29.96% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.05 billion, indicating a 14.34% decrease compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.39 per share and a revenue of $31.09 billion, indicating changes of -6.46% and -1.51%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Paccar. These revisions help to show the ever-changing nature 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 shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 2.38% fall in the Zacks Consensus EPS estimate. As of now, Paccar holds a Zacks Rank of #3 (Hold).

In terms of valuation, Paccar is presently being traded at a Forward P/E ratio of 13.31. This signifies a premium in comparison to the average Forward P/E of 11.13 for its industry.

Meanwhile, PCAR's PEG ratio is currently 1.79. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Automotive - Domestic industry stood at 0.82 at the close of the market yesterday.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 153, placing it within the bottom 40% of over 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.

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