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

Paccar (PCAR) closed the latest trading day at $121.45, indicating a +0.37% change from the previous session's end. The stock lagged the S&P 500's daily gain of 0.89%. Meanwhile, the Dow gained 1.03%, and the Nasdaq, a tech-heavy index, added 1.25%.

The truck maker's shares have seen an increase of 12.65% over the last month, surpassing the Auto-Tires-Trucks sector's loss of 2.46% and the S&P 500's gain of 3.56%.

The upcoming earnings release of Paccar will be of great interest to investors. In that report, analysts expect Paccar to post earnings of $2.14 per share. This would mark a year-over-year decline of 4.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.06 billion, up 0.12% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.13 per share and revenue of $32.25 billion. These totals would mark changes of -15.4% and -3.21%, respectively, from last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Paccar. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.75% higher. Paccar currently has a Zacks Rank of #1 (Strong Buy).

With respect to valuation, Paccar is currently being traded at a Forward P/E ratio of 14.88. This expresses no noticeable deviation compared to the average Forward P/E of 14.88 of its industry.

It's also important to note that PCAR currently trades at a PEG ratio of 1.89. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Automotive - Domestic industry had an average PEG ratio of 1.89 as trading concluded yesterday.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 62, positioning it in the top 25% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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