The latest trading session saw Paccar (PCAR) ending at $95.38, denoting a -0.15% adjustment from its last day’s close. This change lagged the S&P 500’s daily gain of 0.41%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.45%.
Prior to today’s trading, shares of the truck maker had gained 11.1% over the past month. This has outpaced the Auto-Tires-Trucks sector’s gain of 6.26% and the S&P 500’s gain of 4.91% in that time.
Market participants will be closely following the financial results of Paccar in its upcoming release. The company is forecasted to report an EPS of $2.13, showcasing a 21.02% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $8.09 billion, up 4.53% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.99 per share and a revenue of $32.81 billion, signifying shifts of +56.35% and +20.12%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Paccar. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Paccar currently has a Zacks Rank of #2 (Buy).
In the context of valuation, Paccar is at present trading with a Forward P/E ratio of 10.63. Its industry sports an average Forward P/E of 9.91, so one might conclude that Paccar is trading at a premium comparatively.
Meanwhile, PCAR’s PEG ratio is currently 1.06. 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 1.37 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 152, which puts it in the bottom 40% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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