Paccar (PCAR) Stock Analysis: Outperformance, Earnings Outlook, Valuation Metrics, and Industry Rank
In the latest trading session, shares of truck maker Paccar (PCAR) closed at $94.01, marking a +2.46% move from the prior day. The stock outperformed the S&P 500, which registered a gain of 1.11% for the day. The Dow gained 1.19%, while the tech-heavy Nasdaq added 1.43%.
Shares of Paccar have depreciated by 1.6% over the past month, underperforming the Auto-Tires-Trucks sector's gain of 0.34%, and the S&P 500's gain of 3.92%.
Earnings Outlook
Analysts and investors will be closely watching Paccar's upcoming earnings disclosure. The company is expected to report EPS of $1.29, down 39.44% from the prior-year quarter. Additionally, 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.
Zacks Rank and Valuation
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, which 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 Automotive - Domestic industry had an average PEG ratio of 1.14 as trading concluded yesterday.
Industry Rank
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector, with its current Zacks Industry Rank of 209, ranking 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.
In conclusion, investors should keep a close eye on Paccar's upcoming earnings disclosure and any changes in analyst estimates for the stock. Additionally, it's important to consider the company's valuation metrics and industry rank when making investment decisions. Don't forget to use Zacks.com to keep track of all these stock-moving metrics and others in the upcoming trading sessions.
For more information on Paccar and other stocks, visit Zacks Investment Research at zacks.com.
