In the latest trading session, Paccar (PCAR) closed at $112.81, marking a +1.11% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.64%. At the same time, the Dow added 0.47%, and the tech-heavy Nasdaq gained 0.52%.
Coming into today, shares of the truck maker had gained 8.33% in the past month. In that same time, the Auto-Tires-Trucks sector gained 14.81%, while the S&P 500 gained 3%.
The investment community will be paying close attention to the earnings performance of Paccar in its upcoming release. The company is forecasted to report an EPS of $1.05, showcasing a 36.75% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $6.06 billion, reflecting a 17.64% fall from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.01 per share and revenue of $26.05 billion. These totals would mark changes of -36.58% and -17.48%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Paccar. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 has remained steady. Paccar is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Paccar is at present trading with a Forward P/E ratio of 22.28. This valuation marks a premium compared to its industry average Forward P/E of 16.47.
It is also worth noting that PCAR currently has a PEG ratio of 15.26. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Automotive - Domestic industry had an average PEG ratio of 1.94.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 39% 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.
To follow PCAR in the coming trading sessions, be sure to utilize Zacks.com.
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PACCAR Inc. (PCAR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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