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Why Paccar (PCAR) Dipped More Than Broader Market Today
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Paccar (PCAR - Free Report) closed the most recent trading day at $106.86, moving -2.25% from the previous trading session. This change lagged the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.66%, and the tech-heavy Nasdaq lost 0.22%.
The truck maker's shares have seen a decrease of 10.76% over the last month, not keeping up with the Auto-Tires-Trucks sector's gain of 1.09% and the S&P 500's gain of 1.4%.
Market participants will be closely following the financial results of Paccar in its upcoming release. The company is expected to report EPS of $1.61, up 43.75% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $7.54 billion, indicating a 23.48% increase compared to the same quarter of the previous year.
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.
Any recent changes to analyst estimates for Paccar should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. 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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Paccar is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Paccar is presently being traded at a Forward P/E ratio of 18.51. This represents a premium compared to its industry average Forward P/E of 16.41.
Investors should also note that PCAR has a PEG ratio of 1.25 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. The average PEG ratio for the Automotive - Domestic industry stood at 0.97 at the close of the market yesterday.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 96, positioning it in the top 40% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
View the Zacks #1 Rank List
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Why Paccar (PCAR) Dipped More Than Broader Market Today
Paccar (PCAR - Free Report) closed the most recent trading day at $106.86, moving -2.25% from the previous trading session. This change lagged the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.66%, and the tech-heavy Nasdaq lost 0.22%.
The truck maker's shares have seen a decrease of 10.76% over the last month, not keeping up with the Auto-Tires-Trucks sector's gain of 1.09% and the S&P 500's gain of 1.4%.
Market participants will be closely following the financial results of Paccar in its upcoming release. The company is expected to report EPS of $1.61, up 43.75% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $7.54 billion, indicating a 23.48% increase compared to the same quarter of the previous year.
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.
Any recent changes to analyst estimates for Paccar should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. 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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Paccar is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Paccar is presently being traded at a Forward P/E ratio of 18.51. This represents a premium compared to its industry average Forward P/E of 16.41.
Investors should also note that PCAR has a PEG ratio of 1.25 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. The average PEG ratio for the Automotive - Domestic industry stood at 0.97 at the close of the market yesterday.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 96, positioning it in the top 40% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.