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Are Investors Undervaluing Paccar (PCAR) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Paccar (PCAR - Free Report) . PCAR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.54 right now. For comparison, its industry sports an average P/E of 11.42. Over the past year, PCAR's Forward P/E has been as high as 17.87 and as low as 10.44, with a median of 13.43.
PCAR is also sporting a PEG ratio of 0.98. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PCAR's PEG compares to its industry's average PEG of 1.22. Over the last 12 months, PCAR's PEG has been as high as 1.79 and as low as 0.97, with a median of 1.34.
Finally, investors will want to recognize that PCAR has a P/CF ratio of 7.08. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. PCAR's P/CF compares to its industry's average P/CF of 7.30. Over the past year, PCAR's P/CF has been as high as 12.56 and as low as 6.64, with a median of 8.94.
Value investors will likely look at more than just these metrics, but the above data helps show that Paccar is likely undervalued currently. And when considering the strength of its earnings outlook, PCAR sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Paccar (PCAR) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Paccar (PCAR - Free Report) . PCAR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.54 right now. For comparison, its industry sports an average P/E of 11.42. Over the past year, PCAR's Forward P/E has been as high as 17.87 and as low as 10.44, with a median of 13.43.
PCAR is also sporting a PEG ratio of 0.98. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PCAR's PEG compares to its industry's average PEG of 1.22. Over the last 12 months, PCAR's PEG has been as high as 1.79 and as low as 0.97, with a median of 1.34.
Finally, investors will want to recognize that PCAR has a P/CF ratio of 7.08. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. PCAR's P/CF compares to its industry's average P/CF of 7.30. Over the past year, PCAR's P/CF has been as high as 12.56 and as low as 6.64, with a median of 8.94.
Value investors will likely look at more than just these metrics, but the above data helps show that Paccar is likely undervalued currently. And when considering the strength of its earnings outlook, PCAR sticks out at as one of the market's strongest value stocks.