Paccar (PCAR) closed at $94.01 in the latest trading session, marking a +2.46% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 1.11% for the day. Elsewhere, the Dow gained 1.19%, while the tech-heavy Nasdaq added 1.43%.
Shares of the truck maker have depreciated by 1.6% over the course of the past month, underperforming the Auto-Tires-Trucks sector's gain of 0.34%, and the S&P 500's gain of 3.92%.
Analysts and investors alike will be keeping a close eye on the performance of Paccar in its upcoming earnings disclosure. The company is expected to report EPS of $1.29, down 39.44% from the prior-year quarter. 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.
Investors should also pay attention to any latest changes in analyst estimates for Paccar. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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. The Zacks Consensus EPS estimate has moved 0.35% higher within the past month. As of now, Paccar holds a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, Paccar is currently exchanging hands at a Forward P/E ratio of 16.05. This denotes a premium relative to the industry average Forward P/E of 11.45.
Investors should also note that PCAR has a PEG ratio of 3.39 right now. 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. The Automotive - Domestic industry had an average PEG ratio of 1.14 as trading concluded yesterday.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 209, this industry ranks in the bottom 16% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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