In the latest close session, Paccar (PCAR) was down 2.03% at $97.21. This move lagged the S&P 500's daily loss of 0.33%. Elsewhere, the Dow saw a downswing of 0.63%, while the tech-heavy Nasdaq depreciated by 0.22%.
The stock of truck maker has risen by 5.96% in the past month, leading the Auto-Tires-Trucks sector's loss of 2.18% and the S&P 500's gain of 4.07%.
Market participants will be closely following the financial results of Paccar in its upcoming release. The company plans to announce its earnings on July 22, 2025. In that report, analysts expect Paccar to post earnings of $1.29 per share. This would mark a year-over-year decline of 39.44%. At the same time, our most recent consensus estimate is projecting a revenue of $6.81 billion, reflecting a 17.63% fall from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.72 per share and a revenue of $27.75 billion, indicating changes of -27.59% and -12.09%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Paccar. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, the Zacks Consensus EPS estimate remained stagnant. Paccar is currently a Zacks Rank #5 (Strong Sell).
Looking at its valuation, Paccar is holding a Forward P/E ratio of 17.35. This indicates a premium in contrast to its industry's Forward P/E of 12.15.
Meanwhile, PCAR's PEG ratio is currently 3.67. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Automotive - Domestic industry held an average PEG ratio of 1.23.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 205, positioning it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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PACCAR Inc. (PCAR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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