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Double digit earnings growth is still on the agenda for PACCAR (PCAR - Free Report) in 2012. The truck manufacturer will soon report first quarter results. Will it surpass last quarter's record revenue? This Zacks #1 Rank (Strong Buy) still has value with a forward P/E of 13.4.

PACCAR makes light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF brands.

Headquartered in Bellevue, Washington, about half of the company's revenue is now generated outside of the United States. Kenworth Trucks are built in the US, Canada, Mexico and Australia and are sold throughout the world.

Peterbilt is made and distributed in the US and Canada. DAF Trucks manufactures in the Netherlands, Belgium and the United Kingdom for the Western and Eastern European markets. It also exports to Asia, Africa and North America.

PACCAR Beat by 15.2% in Q4

On Jan 31, PACCAR reported fourth quarter results and easily blew by the Zacks Consensus Estimate by 12 cents. Earnings per share were 91 cents compared to the consensus of 79 cents. This was a 93% increase from the year ago quarter when the company made just 46 cents.

Revenue jumped 58% to a record $4.9 billion from $3.1 billion in 2010.

Net sales and financial service revenue for all of 2011 was the second highest in the company's history at $16.4 billion, up from $10.3 billion in 2010.

Its vehicles saw a record share in the above 15-tonne market in Europe and Class 8 market in North America in 2011.

Global Expansion Continued

PACCAR increased its global presence as it began construction on a 300,000-square-foot DAF assembly facility in Brazil. Kenworth vehicles have been in many South American countries for over 40 years. This will be the first introduction of the DAF brand into Chile, Ecuador and Peru as well as throughout the region.

The Shanghai office was also expanded in 2011 to handle increased component purchases for production and aftermarket operations.

In India, PACCAR opened a new PACCAR Technical Center which will focus on engineering, information technology and component sourcing for global production and aftermarket operations.

2012 Zacks Consensus Estimate Moves Higher

In January, PACCAR forecast further improvement in the U.S. and Canadian truck market in 2012.

Europe was another matter as it saw lower Eurozone industry truck orders in the last months of 2011. Did this continue into 2012?

The analysts don't think so. They're bullish on 2012.

One estimate was recently raised for 2012 which has pushed the Zacks Consensus Estimate up to $3.33 from $3.31 per share.

That is earnings growth of 16.4% as the company made $2.86 in 2011.

A Value Stock

Shares have been all over the place in the last two years. They recently rallied but have been weakening as the 2012 rally has been sidelined in April of 2012.

But there's value in the shares.

In addition to a P/E under 15, which is my cut off for value, the company has a price-to-book ratio which just skirts in under my cut off for that metric.

The P/B ratio is 2.98, just under the 3.0 I use to determine value.

It also has a P/S ratio of 1.0 which is right at the metric which indicates a company is undervalued. Its peers, however, are more expensive with a P/S ratio of 1.5.

Dividend Superstar

PACCAR is one of those companies that just keeps rewarding shareholders without much fanfare year after year.

PACCAR has paid a dividend every year since 1941.

Total dividends in 2011 rose by 88% over 2010 as the company paid a special dividend of 70 cents per share in addition to its regular $1.30 dividend.

Currently, the dividend is yielding 1.6%.

PACCAR has a PEG ratio of just 0.7 which indicates that it has the magic combination of both growth and value. PACCAR is scheduled to report first quarter earnings on Apr 24. Investors will get a good glimpse into the strength of the global economy.

Tracey Ryniec is the Value Stock Strategist for She is also the Editor of the Turnaround Trader and Insider Trader services. You can follow her on twitter at @TraceyRyniec.

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