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Why Paccar (PCAR) Outpaced the Stock Market Today

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Paccar (PCAR - Free Report) ended the recent trading session at $121.92, demonstrating a +2.45% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.26%. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq added 0.25%.

The truck maker's stock has climbed by 6.6% in the past month, exceeding the Auto-Tires-Trucks sector's loss of 1.39% and the S&P 500's gain of 1.57%.

The upcoming earnings release of Paccar will be of great interest to investors. The company's earnings report is expected on January 27, 2026. The company's upcoming EPS is projected at $1.05, signifying a 36.75% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $6.06 billion, down 17.69% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.01 per share and revenue of $26.48 billion, which would represent changes of -36.58% and 0%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Paccar. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.55% higher. Paccar currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Paccar currently has a Forward P/E ratio of 21.42. This signifies a premium in comparison to the average Forward P/E of 14.53 for its industry.

Also, we should mention that PCAR has a PEG ratio of 14.67. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Automotive - Domestic industry was having an average PEG ratio of 2.02.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 44% 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.

To follow PCAR in the coming trading sessions, be sure to utilize Zacks.com.


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