Paccar (PCAR) closed the most recent trading day at $99.08, moving +1.4% from the previous trading session. The stock outpaced the S&P 500’s daily gain of 0.06%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.39%.
Prior to today’s trading, shares of the truck maker had gained 1.55% lagged the Auto-Tires-Trucks sector’s gain of 21% and the S&P 500’s gain of 3.94%.
The upcoming earnings release of Paccar will be of great interest to investors. The company is predicted to post an EPS of $1.14, indicating a 38.38% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.06 billion, indicating a 21.34% decrease compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.21 per share and revenue of $26.33 billion. These totals would mark changes of -34.05% and -16.57%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Paccar. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.16% lower within the past month. Right now, Paccar possesses a Zacks Rank of #4 (Sell).
Looking at valuation, Paccar is presently trading at a Forward P/E ratio of 18.77. For comparison, its industry has an average Forward P/E of 13.36, which means Paccar is trading at a premium to the group.
It is also worth noting that PCAR currently has a PEG ratio of 3.97. 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 currently had an average PEG ratio of 2.5 as of yesterday’s close.
The Automotive – Domestic industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 147, placing it within the bottom 41% of over 250 industries.
