Paccar (PCAR) ended the recent trading session at $97.66, demonstrating a -1.69% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.83% for the day. Elsewhere, the Dow gained 0.77%, while the tech-heavy Nasdaq added 1.02%.
The truck maker's stock has climbed by 7.29% in the past month, exceeding the Auto-Tires-Trucks sector's loss of 3.7% and the S&P 500's gain of 4.99%.
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, our latest consensus estimate is calling for revenue of $6.81 billion, down 17.63% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.72 per share and revenue of $27.75 billion, which would represent changes of -27.59% and -12.09%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Paccar. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Paccar is carrying a Zacks Rank of #4 (Sell).
In the context of valuation, Paccar is at present trading with a Forward P/E ratio of 17.38. This indicates a premium in contrast to its industry's Forward P/E of 12.14.
It's also important to note that PCAR currently trades at a PEG ratio of 3.67. 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 1.23 as trading concluded yesterday.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 212, which puts it in the bottom 15% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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
