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Paccar (PCAR) Stock Drops Despite Market Gains: Important Facts to Note

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In the latest close session, Paccar (PCAR - Free Report) was down 1.4% at $94.05. This change lagged the S&P 500's 0.54% gain on the day. At the same time, the Dow added 0.52%, and the tech-heavy Nasdaq gained 0.74%.

Shares of the truck maker witnessed a gain of 5.15% over the previous month, beating the performance of the Auto-Tires-Trucks sector with its gain of 0.25%, and the S&P 500's gain of 4.2%.

Investors will be eagerly watching for the performance of Paccar in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 22, 2025. The company's upcoming EPS is projected at $1.28, signifying a 39.91% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $6.82 billion, indicating a 17.49% decline compared to the corresponding quarter of the prior year.

PCAR's full-year Zacks Consensus Estimates are calling for earnings of $5.72 per share and revenue of $27.74 billion. These results would represent year-over-year changes of -27.59% and -12.12%, respectively.

Investors should also note any recent changes to analyst estimates for Paccar. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.07% rise in the Zacks Consensus EPS estimate. Right now, Paccar possesses a Zacks Rank of #2 (Buy).

In terms of valuation, Paccar is currently trading at a Forward P/E ratio of 16.67. This indicates a premium in contrast to its industry's Forward P/E of 11.44.

Investors should also note that PCAR has a PEG ratio of 3.52 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Automotive - Domestic stocks are, on average, holding a PEG ratio of 1.2 based on yesterday's closing prices.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 174, finds itself in the bottom 30% echelons 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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