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PACCAR (PCAR) Makes Equity Investment in Platform Science

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PACCAR Inc. (PCAR - Free Report) has made an equity investment in Platform Science, PACCAR’s connected truck partner. PACCAR and Platform Science recently partnered to integrate Platform Science’s Virtual Vehicle technology with the PACCAR Connect telematics system. This strategic investment will supplement the integration process.

The integrated product will be incorporated in Kenworth and Peterbilt, PACCAR’s wholly-owned subsidiaries, vehicles. The product will offer customers a standardized telematics operating solution and application store through which they can directly access software solutions, real-time vehicle data and third-party applications from their vehicles. The number of telecommunications devices used in the vehicles will be reduced to uncomplicate the vehicle information technology environment. Factory installation will eliminate the need for aftermarket installation, increasing customer productivity and uptime.

The investment in Platform Science will make PACCAR Connect a handy, customizable and productive connected truck solution and improve customers’ agility and operating efficiency. The product will be launched on Kenworth and Peterbilt trucks in 2024.

PACCAR’s accelerated efforts toward electrification, connected vehicle services and advanced driver-assistance system options underpin its industry standing. PACCAR’s Peterbilt Model 579, equipped with the Aurora self-driving system, strengthens its portfolio of next-gen offerings, while Kenworth’s T680E battery-electric truck showcases PACCAR’s commitment to providing emissions-free commercial vehicles.

The heavy-duty truck manufacturer reported record annual revenue and net income in the last fiscal year. PACCAR recorded consolidated revenues of $28.82 billion in 2022, up from revenues of $23.52 billion in 2021. It recorded a net income of $3.01 billion in 2022, up from $1.87 billion in 2021.

Zacks Rank & Key Picks

PCAR currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A few top-ranked players in the auto space are Geely Automobile Holdings Limited (GELYY - Free Report) , Modine Manufacturing Company (MOD - Free Report) and Wabash National Corporation (WNC - Free Report) , all of which sport a Zacks Rank #1.

Geely is engaged in automobile manufacturing and related areas. The Zacks Consensus Estimates for GELYY’s 2023 sales and earnings imply year-over-year growth of around 57.5% and 7.4%, respectively.

Modine operates primarily in a single industry of manufacturing and selling heat transfer equipment. The Zacks Consensus Estimates for MOD’s 2023 sales and earnings imply year-over-year growth of roughly 11.4% and 43.1%, respectively.

Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimate for WNC’s 2023 sales and earnings implies year-over-year growth of around 13.1% and 28.9%, respectively.

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