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Are Investors Undervaluing Paccar (PCAR) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8.88 right now. For comparison, its industry sports an average P/E of 9.72. Over the last 12 months, PCAR's Forward P/E has been as high as 17.87 and as low as 8.80, with a median of 11.31.
Investors should also note that PCAR holds a PEG ratio of 0.82. 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. PCAR's industry currently sports an average PEG of 1.32. PCAR's PEG has been as high as 1.79 and as low as 0.81, with a median of 1.13, all within the past year.
We should also highlight that PCAR has a P/B ratio of 2.12. 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 attractive against its industry's average P/B of 2.26. 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 2.67.
Finally, our model also underscores that PCAR has a P/CF ratio of 5.91. 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 5.96. Within the past 12 months, PCAR's P/CF has been as high as 11.81 and as low as 5.86, with a median of 7.57.
These are just a handful of the figures considered in Paccar's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PCAR is an impressive value stock right now.
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Are Investors Undervaluing Paccar (PCAR) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8.88 right now. For comparison, its industry sports an average P/E of 9.72. Over the last 12 months, PCAR's Forward P/E has been as high as 17.87 and as low as 8.80, with a median of 11.31.
Investors should also note that PCAR holds a PEG ratio of 0.82. 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. PCAR's industry currently sports an average PEG of 1.32. PCAR's PEG has been as high as 1.79 and as low as 0.81, with a median of 1.13, all within the past year.
We should also highlight that PCAR has a P/B ratio of 2.12. 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 attractive against its industry's average P/B of 2.26. 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 2.67.
Finally, our model also underscores that PCAR has a P/CF ratio of 5.91. 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 5.96. Within the past 12 months, PCAR's P/CF has been as high as 11.81 and as low as 5.86, with a median of 7.57.
These are just a handful of the figures considered in Paccar's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PCAR is an impressive value stock right now.