Back to top

Image: Bigstock

Here's Why Paccar (PCAR) Fell More Than Broader Market

Read MoreHide Full Article

In the latest trading session, Paccar (PCAR - Free Report) closed at $123.10, marking a -0.64% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.2%. Meanwhile, the Dow experienced a drop of 0.6%, and the technology-dominated Nasdaq saw an increase of 0.11%.

The truck maker's stock has climbed by 9.45% in the past month, exceeding the Auto-Tires-Trucks sector's loss of 1.71% and the S&P 500's gain of 3.32%.

Market participants will be closely following the financial results of Paccar in its upcoming release. The company is expected to report EPS of $2.15, down 4.44% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.06 billion, up 0.12% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.15 per share and a revenue of $32.28 billion, indicating changes of -15.19% and -3.11%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Paccar. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.67% higher. At present, Paccar boasts a Zacks Rank of #2 (Buy).

Investors should also note Paccar's current valuation metrics, including its Forward P/E ratio of 15.2. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 15.2.

It's also important to note that PCAR currently trades at a PEG ratio of 1.93. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Automotive - Domestic industry was having an average PEG ratio of 1.93.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


PACCAR Inc. (PCAR) - free report >>

Published in