In the latest close session, Paccar (PCAR) was up +2.52% at $118.20. The stock's change was more than the S&P 500's daily gain of 0.01%. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq lost 0.44%.
Shares of the truck maker have appreciated by 1.6% over the course of the past month, outperforming the Auto-Tires-Trucks sector's loss of 2.03%, and the S&P 500's gain of 0.86%.
The investment community will be paying close attention to the earnings performance of Paccar in its upcoming release. On that day, Paccar is projected to report earnings of $1.06 per share, which would represent a year-over-year decline of 36.14%. At the same time, our most recent consensus estimate is projecting a revenue of $6.06 billion, reflecting a 17.69% fall from the equivalent quarter last 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.
Investors should also note any 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.79% higher within the past month. Right now, Paccar possesses a Zacks Rank of #2 (Buy).
In the context of valuation, Paccar is at present trading with a Forward P/E ratio of 20.94. This valuation marks a premium compared to its industry average Forward P/E of 14.07.
It's also important to note that PCAR currently trades at a PEG ratio of 14.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Domestic industry currently had an average PEG ratio of 1.96 as of yesterday's close.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 75, finds itself in the top 31% 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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