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Paccar (PCAR) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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In the latest market close, Paccar (PCAR - Free Report) reached $96.32, with a -1.7% movement compared to the previous day. The stock fell short of the S&P 500, which registered a loss of 0.29% for the day. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq depreciated by 0.31%.

The truck maker's shares have seen an increase of 2.4% over the last month, not keeping up with the Auto-Tires-Trucks sector's gain of 2.42% and outstripping the S&P 500's gain of 1.57%.

Market participants will be closely following the financial results of Paccar in its upcoming release. The company plans to announce its earnings on October 22, 2024. The company is forecasted to report an EPS of $1.82, showcasing a 22.22% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.56 billion, indicating an 8.13% decrease compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.08 per share and revenue of $31.8 billion, indicating changes of -15.92% and -4.54%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Paccar. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 shifted 0.08% downward. Paccar is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Paccar currently has a Forward P/E ratio of 12.13. For comparison, its industry has an average Forward P/E of 13.49, which means Paccar is trading at a discount to the group.

Also, we should mention that PCAR has a PEG ratio of 1.52. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Automotive - Domestic industry had an average PEG ratio of 1.47.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 34% of all 250+ industries.

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

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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