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Are Investors Undervaluing Paccar (PCAR) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Paccar (PCAR - Free Report) . PCAR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.84, which compares to its industry's average of 11.06. Over the past year, PCAR's Forward P/E has been as high as 17.87 and as low as 8.90, with a median of 11.43.
We also note that PCAR holds a PEG ratio of 0.91. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PCAR's industry currently sports an average PEG of 1.51. Over the past 52 weeks, PCAR's PEG has been as high as 1.79 and as low as 0.82, with a median of 1.15.
We should also highlight that PCAR has a P/B ratio of 2.34. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.56. Within the past 52 weeks, PCAR's P/B has been as high as 3.45 and as low as 2.10, with a median of 2.70.
Finally, we should also recognize that PCAR has a P/CF ratio of 6.54. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. PCAR's current P/CF looks attractive when compared to its industry's average P/CF of 6.82. Over the past year, PCAR's P/CF has been as high as 11.90 and as low as 5.86, with a median of 7.64.
These are only a few of the key metrics included in Paccar's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PCAR looks like an impressive value stock at the moment.
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Are Investors Undervaluing Paccar (PCAR) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Paccar (PCAR - Free Report) . PCAR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.84, which compares to its industry's average of 11.06. Over the past year, PCAR's Forward P/E has been as high as 17.87 and as low as 8.90, with a median of 11.43.
We also note that PCAR holds a PEG ratio of 0.91. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PCAR's industry currently sports an average PEG of 1.51. Over the past 52 weeks, PCAR's PEG has been as high as 1.79 and as low as 0.82, with a median of 1.15.
We should also highlight that PCAR has a P/B ratio of 2.34. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.56. Within the past 52 weeks, PCAR's P/B has been as high as 3.45 and as low as 2.10, with a median of 2.70.
Finally, we should also recognize that PCAR has a P/CF ratio of 6.54. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. PCAR's current P/CF looks attractive when compared to its industry's average P/CF of 6.82. Over the past year, PCAR's P/CF has been as high as 11.90 and as low as 5.86, with a median of 7.64.
These are only a few of the key metrics included in Paccar's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PCAR looks like an impressive value stock at the moment.