We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Paccar (PCAR) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Read MoreHide Full Article
Paccar (PCAR - Free Report) ended the recent trading session at $112.09, demonstrating a -1.59% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.76%. Meanwhile, the Dow experienced a drop of 0.68%, and the technology-dominated Nasdaq saw a decrease of 1.13%.
The truck maker's stock has dropped by 11.86% in the past month, falling short of the Auto-Tires-Trucks sector's loss of 0.22% and the S&P 500's gain of 1.26%.
The upcoming earnings release of Paccar will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.61, reflecting a 43.75% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $7.54 billion, showing a 23.48% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.91 per share and revenue of $28.61 billion, which would represent changes of +17.96% and +9.05%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Paccar. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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.
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 past month, the Zacks Consensus EPS estimate has shifted 0.34% upward. Paccar presently features a Zacks Rank of #2 (Buy).
With respect to valuation, Paccar is currently being traded at a Forward P/E ratio of 19.28. For comparison, its industry has an average Forward P/E of 16.78, which means Paccar is trading at a premium to the group.
We can also see that PCAR currently has a PEG ratio of 1.3. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Automotive - Domestic industry had an average PEG ratio of 1.01.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 42, 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
View the Zacks #1 Rank List
Image: Bigstock
Paccar (PCAR) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Paccar (PCAR - Free Report) ended the recent trading session at $112.09, demonstrating a -1.59% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.76%. Meanwhile, the Dow experienced a drop of 0.68%, and the technology-dominated Nasdaq saw a decrease of 1.13%.
The truck maker's stock has dropped by 11.86% in the past month, falling short of the Auto-Tires-Trucks sector's loss of 0.22% and the S&P 500's gain of 1.26%.
The upcoming earnings release of Paccar will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.61, reflecting a 43.75% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $7.54 billion, showing a 23.48% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.91 per share and revenue of $28.61 billion, which would represent changes of +17.96% and +9.05%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Paccar. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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.
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 past month, the Zacks Consensus EPS estimate has shifted 0.34% upward. Paccar presently features a Zacks Rank of #2 (Buy).
With respect to valuation, Paccar is currently being traded at a Forward P/E ratio of 19.28. For comparison, its industry has an average Forward P/E of 16.78, which means Paccar is trading at a premium to the group.
We can also see that PCAR currently has a PEG ratio of 1.3. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Automotive - Domestic industry had an average PEG ratio of 1.01.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 42, 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.