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Here's Why Paccar (PCAR) Gained But Lagged the Market Today

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In the latest market close, Paccar (PCAR - Free Report) reached $106.72, with a +0.68% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.85% for the day. On the other hand, the Dow registered a loss of 0.09%, and the technology-centric Nasdaq increased by 1.53%.

Coming into today, shares of the truck maker had lost 1.96% in the past month. In that same time, the Auto-Tires-Trucks sector lost 2.37%, while the S&P 500 gained 3.11%.

The upcoming earnings release of Paccar will be of great interest to investors. The company's upcoming EPS is projected at $2.14, signifying an 8.15% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $8.32 billion, reflecting a 1.39% fall from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $8.36 per share and revenue of $32.91 billion, which would represent changes of -13.01% and -1.22%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Paccar. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.53% higher. At present, Paccar boasts a Zacks Rank of #3 (Hold).

Digging into valuation, Paccar currently has a Forward P/E ratio of 12.67. This denotes no noticeable deviation relative to the industry's average Forward P/E of 12.67.

It is also worth noting that PCAR currently has a PEG ratio of 1.62. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. PCAR's industry had an average PEG ratio of 1.34 as of yesterday's close.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 60, placing it within the top 24% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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