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Paccar (PCAR) Stock Sinks As Market Gains: Here's Why

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In the latest market close, Paccar (PCAR - Free Report) reached $107.70, with a -0.05% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 0.25%. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.03%.

Coming into today, shares of the truck maker had gained 2.21% in the past month. In that same time, the Auto-Tires-Trucks sector lost 2.37%, while the S&P 500 gained 3.34%.

The investment community will be closely monitoring the performance of Paccar in its forthcoming earnings report. The company is forecasted to report an EPS of $2.14, showcasing an 8.15% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $8.32 billion, indicating a 1.39% decrease compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.36 per share and revenue of $32.91 billion, indicating changes of -13.01% and -1.22%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for Paccar. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

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 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 1.25% higher. At present, Paccar boasts a Zacks Rank of #3 (Hold).

In the context of valuation, Paccar is at present trading with a Forward P/E ratio of 12.88. This denotes no noticeable deviation relative to the industry's average Forward P/E of 12.88.

We can also see that PCAR currently has a PEG ratio of 1.65. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. PCAR's industry had an average PEG ratio of 1.37 as of yesterday's close.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 44, putting it in the top 18% 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.

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

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