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Shares of PACCAR Inc. (PCAR - Free Report) hit 52-week high of $51.14 on Mar 14. Shares of the company started escalating after the release of its promising fourth quarter results on Jan 31. Their previous 52-week high was $50.94.

PACCAR is the third largest manufacturer of heavy-duty trucks (with a capacity of more than 15 metric tons) in the world after Volvo and Daimler (DDAIF - Free Report) , and has substantial manufacturing exposure to light/medium trucks (with a capacity of 6–15 metric tons). It has a market cap of $17.9 billion.

The Zacks Rank #3 (Hold) company performed well in full year 2012. The company’s earnings per share improved 9% to $3.12 from $2.86 in 2011, beating the Zacks Consensus Estimate of $3.09.

PACCAR also generated the highest annual revenues of $17.05 billion in its history, which surpassed the Zacks Consensus Estimate of $15.96 billion. Thanks to the company’s superior products and services, geographic diversification, impressive aftermarket parts business and commendable performance of Financial Services.

Industry sales in the above 16-tonnes in Western and Central Europe were 222,000 units in 2012. The company expects industry sales in the same market between 210,000 units and 250,000 units in 2013 as customers are expected to purchase Euro 5 vehicles ahead of the introduction of the Euro 6 emission requirement in 2014.

Meanwhile, PACCAR achieved a record Class 8 retail market share of 28.9% in the U.S. and Canada as customers benefited from low operating costs of Kenworth and Peterbilt vehicles. Class 8 industry retail sales in the U.S. and Canada improved 14.2% to 225,000 units in 2012 from 197,000 in 2011. The company expects industry retail sales between 210,000 vehicles and 240,000 vehicles in 2013, driven by ongoing replacement of the aging truck population and overall economic growth.

Capital expenditures of $511.0 million and research and development expenses of $279.3 million were made in global expansion strategies during the year. Further, PACCAR expects capital additions of $400–$500 million and research and development expenses of $225–$275 million in 2013 as Kenworth, Peterbilt and DAF design new products and services.

Currently, Magna International (MGA - Free Report) with Zacks Rank #2 (Buy) is performing well in the industry where PACCAR operates.

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