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PACCAR (PCAR - Free Report) recently beat the Zacks Consensus in the first quarter and saw strong sales growth but couldn't quite produce another quarterly revenue record. However, this Zacks #2 Rank (Buy) is even more of a value than a few months ago, as it now trades at just 11.1x forward estimates.

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 For The 3rd Time In A Row

On Apr 24, PACCAR reported its first quarter results and surprised on the Zacks Consensus by 14%. Earnings per share were 91 cents compared to the consensus of 80 cents. This blew away the first quarter of a year ago which saw just 53 cents.

Sales soared 45% to $4.8 billion from $3.3 billion in the year ago quarter. This was also just under the record, achieved in the prior quarter, of $4.9 billion.

Sales were boosted by increased truck sales in North America and growth in financial services assets and aftermarket revenue worldwide.

Its North American customers are replacing an aging fleet as they are seeing increased freight tonnage and higher fleet utilization rates. In Europe, the challenging economy is still providing a drag which resulted in lower industry truck orders in the first quarter.

South American expansion continued in the quarter as PACCAR held a groundbreaking ceremony for its new DAF assembly plant in Brasil on Jan 9. The South American market is a big opportunity for the company. It more than doubled truck deliveries in the Andean region of South America in the quarter, to 2700 units.

Production is expected to begin at the plant by mid-2013.

Share Repurchase Program Continued

During the quarter, PACCAR repurchased about 400,000 shares for $15.6 million as part of its current share repurchase program.

Over the past 9 months, it has bought 9.6 million shares for $353.2 million.

SEC Investigation

On May 10, PACCAR said the SEC had initiated a formal investigation into the company's financials from 2008 to 2011, including loan loss reserves, debt restructuring and segment reporting.

PAACAR is cooperating with the investigation.

2012 Zacks Consensus Estimate Rises

The analysts liked what they heard in the first quarter.

13 estimates moved higher, and only 1 lower, in the last 30 days for 2012. That pushed the 2012 Zacks Consensus Estimate up 4.5% to $3.52 from $3.36 per share.

That is another year of double digit earnings growth of 23%.

Lots of Value

Shares have weakened in recent weeks on worries over the global economy.

The sell off has created even more value.

In addition to a P/E under 15, which is the cut-off I use for value, it also has a price-to-book ratio of 2.4. A P/B under 3.0 usually indicates value.

PACCAR has other value metrics including a price-to-sales ratio of just 0.8. A P/S under 1.0 can mean a company is undervalued.

The company also rewards shareholders with more than just the share repurchase program. It's been paying a dividend every year since 1941.

The dividend currently yields 2.1%.

PACCAR continues to fight off European weakness with strength in its other markets. This is a rare value stock with plenty of growth.

This Week's Value Zacks Rank Buy Stocks

How are the consumers holding up? We're about to find out as Genesco Inc. (GCO) is scheduled to report fiscal first quarter results on May 23. Shares of this Zacks #1 Rank (Strong Buy) have been hot, trading near 5 year highs. But there's plenty of value as GCO has a P/S of 0.7. Read the full article.

The specialty chemical companies are thanking their lucky stars that North American manufacturing remains robust. Quaker Chemical Corporation (KWR) still managed a first quarter sales gain of 11% despite a slowdown in China and Europe. This Zacks #1 Rank (Strong Buy) is a value stock with a forward P/E of 11.2. Read the full article.

What European slowdown? Penske Automotive Group, Inc. (PAG) recently reported the most profitable first quarter in the auto retailer's history. Earnings are expected to grow in the double digits in 2012. Yet this Zacks #1 Rank (Strong Buy) also has attractive valuations with a forward P/E of just 11.4. Read the full article.

Investors hate anything to do with the energy sector right now. Mitcham Industries, Inc. (MIND) has sold off about 26% in just the month of May alone. That makes this Zacks #1 Rank (Strong Buy) a big value with a forward P/E of just 6.8. Read the full article.

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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