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Paccar (PCAR) Dips More Than Broader Markets: What You Should Know

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Paccar (PCAR - Free Report) closed at $101.61 in the latest trading session, marking a -1.03% move from the prior day. This change lagged the S&P 500's daily loss of 0.2%. Meanwhile, the Dow lost 1.14%, and the Nasdaq, a tech-heavy index, added 1.39%.

Coming into today, shares of the truck maker had gained 3.59% in the past month. In that same time, the Auto-Tires-Trucks sector lost 5.25%, while the S&P 500 gained 4.01%.

Investors will be hoping for strength from Paccar as it approaches its next earnings release, which is expected to be January 24, 2023. In that report, analysts expect Paccar to post earnings of $2.23 per share. This would mark year-over-year growth of 51.7%. Our most recent consensus estimate is calling for quarterly revenue of $6.99 billion, up 11.09% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Paccar. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.13% higher within the past month. Paccar currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Paccar is holding a Forward P/E ratio of 12.05. Its industry sports an average Forward P/E of 12.05, so we one might conclude that Paccar is trading at a no noticeable deviation comparatively.

We can also see that PCAR currently has a PEG ratio of 1.2. 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 Automotive - Domestic industry currently had an average PEG ratio of 1.05 as of yesterday's close.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.


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