Paccar (PCAR) Advances While Market Declines: Some Information for Investors
Paccar (PCAR) ended the recent trading session at $98.13, demonstrating a +0.33% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.13% for the day. Meanwhile, the Dow gained 0.33%, and the Nasdaq, a tech-heavy index, lost 0.39%.
The the stock of truck maker has risen by 3.34% in the past month, lagging the Auto-Tires-Trucks sector's gain of 10.12% and overreaching the S&P 500's gain of 2.43%.
Market participants will be closely following the financial results of Paccar in its upcoming release. The company plans to announce its earnings on October 22, 2024. The company is expected to report EPS of $1.82, down 22.22% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.56 billion, down 8.13% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.08 per share and a revenue of $31.8 billion, signifying shifts of -15.92% and -4.54%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Paccar. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% lower. Right now, Paccar possesses a Zacks Rank of #4 (Sell).
With respect to valuation, Paccar is currently being traded at a Forward P/E ratio of 12.11. Its industry sports an average Forward P/E of 13.61, so one might conclude that Paccar is trading at a discount comparatively.
It is also worth noting that PCAR currently has a PEG ratio of 1.51. 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. The Automotive - Domestic industry had an average PEG ratio of 1.45 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 167, which puts it in the bottom 34% of all 250+ industries.
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.
To follow PCAR in the coming trading sessions, be sure to utilize Zacks.com.
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PACCAR Inc. (PCAR) : Free Stock Analysis Report