Paccar (PCAR) ended the recent trading session at $99.34, demonstrating a +1.16% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.48%. Meanwhile, the Dow experienced a drop of 0.02%, and the technology-dominated Nasdaq saw an increase of 0.94%.
Prior to today's trading, shares of the truck maker had gained 4.96% outpaced the Auto-Tires-Trucks sector's loss of 7.77% and lagged the S&P 500's gain of 5.13%.
The investment community will be paying close attention to the earnings performance of Paccar in its upcoming release. The company is forecasted to report an EPS of $1.29, showcasing a 39.44% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $6.81 billion, down 17.63% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.72 per share and a revenue of $27.75 billion, indicating changes of -27.59% and -12.09%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Paccar. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Paccar presently features a Zacks Rank of #4 (Sell).
In terms of valuation, Paccar is presently being traded at a Forward P/E ratio of 17.17. This denotes a premium relative to the industry average Forward P/E of 11.81.
We can also see that PCAR currently has a PEG ratio of 3.63. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Automotive - Domestic industry had an average PEG ratio of 1.2 as trading concluded yesterday.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 213, this industry ranks in the bottom 14% of all industries, numbering over 250.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PACCAR Inc. (PCAR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
