Paccar (PCAR) ended the recent trading session at $91.88, demonstrating a -1.88% change from the preceding day's closing price. This change lagged the S&P 500's 1.13% loss on the day. On the other hand, the Dow registered a loss of 1.79%, and the technology-centric Nasdaq decreased by 1.3%.
The truck maker's shares have seen a decrease of 2.43% over the last month, not keeping up with the Auto-Tires-Trucks sector's loss of 1.16% and the S&P 500's gain of 3.55%.
The upcoming earnings release of Paccar will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.29, reflecting a 39.44% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $6.81 billion, indicating a 17.63% downward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.72 per share and a revenue of $27.75 billion, representing changes of -27.59% and -12.09%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Paccar. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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, 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. Within the past 30 days, our consensus EPS projection has moved 0.35% higher. Paccar currently has a Zacks Rank of #5 (Strong Sell).
Digging into valuation, Paccar currently has a Forward P/E ratio of 16.38. This denotes a premium relative to the industry average Forward P/E of 11.02.
It's also important to note that PCAR currently trades at a PEG ratio of 3.46. 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. As the market closed yesterday, the Automotive - Domestic industry was having an average PEG ratio of 1.13.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 215, this industry ranks in the bottom 13% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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