In the latest close session, Paccar (PCAR) was down 1.94% at $100.86. This change lagged the S&P 500's 0.1% loss on the day. Elsewhere, the Dow gained 0.57%, while the tech-heavy Nasdaq lost 0.33%.
Heading into today, shares of the truck maker had gained 3.42% over the past month, lagging the Auto-Tires-Trucks sector's gain of 16.69% and outpacing the S&P 500's gain of 2.57%.
Investors will be eagerly watching for the performance of Paccar in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.14, marking a 38.38% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.06 billion, down 21.34% from the year-ago period.
PCAR's full-year Zacks Consensus Estimates are calling for earnings of $5.27 per share and revenue of $26.33 billion. These results would represent year-over-year changes of -33.29% and -16.57%, respectively.
It is also important to note the recent changes to analyst estimates for Paccar. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Paccar presently features a Zacks Rank of #4 (Sell).
In terms of valuation, Paccar is currently trading at a Forward P/E ratio of 19.53. This represents a premium compared to its industry average Forward P/E of 14.34.
One should further note that PCAR currently holds a PEG ratio of 4.13. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Automotive - Domestic was holding an average PEG ratio of 2.46 at yesterday's closing price.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 153, finds itself in the bottom 39% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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