Zacks Equity Research
3 min read
Paccar (PCAR) closed at $118.22 in the latest trading session, marking a -3.46% move from the prior day. This change lagged the S&P 500’s 0.45% loss on the day. Elsewhere, the Dow saw a downswing of 1.21%, while the tech-heavy Nasdaq depreciated by 0.01%.
The stock of truck maker has fallen by 4.34% in the past month, lagging the Auto-Tires-Trucks sector’s gain of 0.68% and the S&P 500’s loss of 2.43%.
The investment community will be closely monitoring the performance of Paccar in its forthcoming earnings report. The company’s upcoming EPS is projected at $1.61, signifying a 43.75% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $7.54 billion, showing a 23.48% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.91 per share and revenue of $28.61 billion. These totals would mark changes of +17.96% and +9.05%, respectively, from last year.
It’s also important for investors to be aware of any recent modifications to analyst estimates for Paccar. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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, there’s been a 1.03% rise in the Zacks Consensus EPS estimate. Right now, Paccar possesses a Zacks Rank of #2 (Buy).
Investors should also note Paccar’s current valuation metrics, including its Forward P/E ratio of 20.73. This expresses a premium compared to the average Forward P/E of 17.48 of its industry.
One should further note that PCAR currently holds a PEG ratio of 1.4. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. By the end of yesterday’s trading, the Automotive – Domestic industry had an average PEG ratio of 1.05.
