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Paccar (PCAR) Increases Yet Falls Behind Market: What Investors Need to Know

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In the latest trading session, Paccar (PCAR - Free Report) closed at $88.56, marking a +1.45% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 2.51%. Meanwhile, the Dow experienced a rise of 2.66%, and the technology-dominated Nasdaq saw an increase of 2.71%.

The the stock of truck maker has fallen by 11.51% in the past month, lagging the Auto-Tires-Trucks sector's loss of 9.36% and the S&P 500's loss of 8.86%.

The investment community will be closely monitoring the performance of Paccar in its forthcoming earnings report. The company is scheduled to release its earnings on April 29, 2025. It is anticipated that the company will report an EPS of $1.57, marking a 30.84% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $7.07 billion, down 14.09% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.71 per share and a revenue of $29.23 billion, indicating changes of -15.06% and -7.39%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Paccar. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 9.12% fall in the Zacks Consensus EPS estimate. Paccar presently features a Zacks Rank of #3 (Hold).

From a valuation perspective, Paccar is currently exchanging hands at a Forward P/E ratio of 13. For comparison, its industry has an average Forward P/E of 9.44, which means Paccar is trading at a premium to the group.

It is also worth noting that PCAR currently has a PEG ratio of 1.75. 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 average PEG ratio for the Automotive - Domestic industry stood at 0.78 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 213, placing it within the bottom 15% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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