In the latest market close, Paccar (PCAR) reached $94.05, with a -0.97% movement compared to the previous day. The stock's change was less than the S&P 500's daily loss of 0.56%. On the other hand, the Dow registered a loss of 0.58%, and the technology-centric Nasdaq decreased by 0.51%.
Shares of the truck maker have appreciated by 5.18% over the course of the past month, underperforming the Auto-Tires-Trucks sector's gain of 16.76% and the S&P 500's gain of 7.37%.
Analysts and investors alike will be keeping a close eye on the performance of Paccar in its upcoming earnings disclosure. On that day, Paccar is projected to report earnings of $1.29 per share, which would represent a year-over-year decline of 39.44%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.81 billion, down 17.63% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.70 per share and revenue of $27.88 billion, indicating changes of -27.85% and -11.69%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Paccar. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 13.94% decrease. At present, Paccar boasts a Zacks Rank of #5 (Strong Sell).
With respect to valuation, Paccar is currently being traded at a Forward P/E ratio of 16.67. This represents a premium compared to its industry's average Forward P/E of 10.66.
It is also worth noting that PCAR currently has a PEG ratio of 3.52. 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. As the market closed yesterday, the Automotive - Domestic industry was having an average PEG ratio of 1.11.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 218, which puts it in the bottom 12% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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PACCAR Inc. (PCAR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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