In the latest trading session, Paccar (PCAR) closed at $115.30, marking a -1.52% move from the previous day. This move lagged the S&P 500's daily loss of 0.34%. Meanwhile, the Dow experienced a drop of 0.94%, and the technology-dominated Nasdaq saw an increase of 0.16%.
Heading into today, shares of the truck maker had gained 7.5% over the past month, outpacing the Auto-Tires-Trucks sector's loss of 1.39% and the S&P 500's gain of 1.19%.
Analysts and investors alike will be keeping a close eye on the performance of Paccar in its upcoming earnings disclosure. In that report, analysts expect Paccar to post earnings of $1.06 per share. This would mark a year-over-year decline of 36.14%. Meanwhile, the latest consensus estimate predicts the revenue to be $6.06 billion, indicating a 17.69% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.01 per share and revenue of $26.04 billion, which would represent changes of -36.58% and 0%, respectively, from the prior year.
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. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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 past month, the Zacks Consensus EPS estimate has moved 0.79% higher. Right now, Paccar possesses a Zacks Rank of #2 (Buy).
In terms of valuation, Paccar is currently trading at a Forward P/E ratio of 21.26. This expresses a premium compared to the average Forward P/E of 13.55 of its industry.
One should further note that PCAR currently holds a PEG ratio of 14.56. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Automotive - Domestic industry had an average PEG ratio of 1.97.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 51, this industry ranks in the top 21% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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