In the latest market close, Paccar (PCAR) reached $88.17, with a +1.57% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.13%. Elsewhere, the Dow lost 1.33%, while the tech-heavy Nasdaq lost 0.13%.
The truck maker's stock has dropped by 12.83% in the past month, falling short of the Auto-Tires-Trucks sector's loss of 6.77% and the S&P 500's loss of 6.3%.
Investors will be eagerly watching for the performance of Paccar in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 29, 2025. It is anticipated that the company will report an EPS of $1.59, marking a 29.96% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $7.13 billion, indicating a 13.47% decline compared to the corresponding quarter of the prior year.
PCAR's full-year Zacks Consensus Estimates are calling for earnings of $7.13 per share and revenue of $29.94 billion. These results would represent year-over-year changes of -9.75% and -5.15%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Paccar. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 4.68% lower. Paccar presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Paccar is currently being traded at a Forward P/E ratio of 12.18. This indicates a premium in contrast to its industry's Forward P/E of 9.29.
Meanwhile, PCAR's PEG ratio is currently 1.63. 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. As the market closed yesterday, the Automotive - Domestic industry was having an average PEG ratio of 0.77.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 201, this industry ranks in the bottom 19% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on 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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