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Paccar (PCAR) Suffers a Larger Drop Than the General Market: Key Insights

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Paccar (PCAR - Free Report) ended the recent trading session at $109.10, demonstrating a -0.83% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.02%. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq decreased by 0.09%.

Shares of the truck maker witnessed a gain of 2.77% over the previous month, beating the performance of the Auto-Tires-Trucks sector with its loss of 4.73% and underperforming the S&P 500's gain of 4.59%.

Investors will be eagerly watching for the performance of Paccar in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.14, reflecting an 8.15% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $8.32 billion, showing a 1.39% drop compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.26 per share and a revenue of $32.91 billion, representing changes of -14.05% and -1.22%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Paccar. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.28% higher. Paccar is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Paccar currently has a Forward P/E ratio of 13.32. This expresses no noticeable deviation compared to the average Forward P/E of 13.32 of its industry.

Meanwhile, PCAR's PEG ratio is currently 1.7. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Automotive - Domestic stocks are, on average, holding a PEG ratio of 1.4 based on yesterday's closing prices.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 47, this industry ranks in the top 19% of all industries, numbering over 250.

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.

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