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Strength Seen in Paccar (PCAR): Can Its 3.7% Jump Turn into More Strength?

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Paccar (PCAR - Free Report) shares soared 3.7% in the last trading session to close at $117.08. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.9% gain over the past four weeks.

PACCAR shares surged as the company is set to benefit from growing demand and reduced tariff costs. Demand in PACCAR’s Parts business is supported by the increasing adoption of MX engines, strong truck utilization, and an aging fleet. The company expects margin improvement beginning in 2026 as the implementation of Section 232 reduces tariff costs on medium- and heavy-duty trucks.

This truck maker is expected to post quarterly earnings of $1.06 per share in its upcoming report, which represents a year-over-year change of -36.1%. Revenues are expected to be $6.06 billion, down 17.7% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Paccar, the consensus EPS estimate for the quarter has been revised 1.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on PCAR going forward to see if this recent jump can turn into more strength down the road.

 

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Paccar belongs to the Zacks Automotive - Domestic industry. Another stock from the same industry, Rivian Automotive (RIVN - Free Report) , closed the last trading session 0.3% lower at $19.53. Over the past month, RIVN has returned 11.2%.

For Rivian Automotive, the consensus EPS estimate for the upcoming report has changed -10.4% over the past month to -$0.68. This represents a change of -30.8% from what the company reported a year ago. Rivian Automotive currently has a Zacks Rank of #3 (Hold).


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