Paccar (PCAR) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest close session, Paccar (PCAR) was down 1.65% at $109.96. This change lagged the S&P 500's 0.25% loss on the day. Elsewhere, the Dow lost 0.86%, while the tech-heavy Nasdaq added 0.24%.
Coming into today, shares of the truck maker had lost 8.7% in the past month. In that same time, the Auto-Tires-Trucks sector lost 2.07%, while the S&P 500 lost 0.42%.
The investment community will be closely monitoring the performance of Paccar in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.61, marking a 43.75% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $7.54 billion, showing a 23.48% escalation compared to the year-ago quarter.
PCAR's full-year Zacks Consensus Estimates are calling for earnings of $5.91 per share and revenue of $28.61 billion. These results would represent year-over-year changes of +17.96% and +9.05%, respectively.
It is also important to note the recent changes to analyst estimates for Paccar. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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, 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. Within the past 30 days, our consensus EPS projection has moved 0.34% higher. Currently, Paccar is carrying a Zacks Rank of #2 (Buy).
From a valuation perspective, Paccar is currently exchanging hands at a Forward P/E ratio of 18.93. For comparison, its industry has an average Forward P/E of 15.79, which means Paccar is trading at a premium to the group.
We can additionally observe that PCAR currently boasts a PEG ratio of 1.28. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Automotive - Domestic stocks are, on average, holding a PEG ratio of 0.96 based on yesterday's closing prices.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 45, which puts it in the top 19% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This innovative software-as-a-service firm upped its user base +22% year over year. That rate is increasing and margins are expanding as AI efficiencies take effect. Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners UpPACCAR Inc. (PCAR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
