Paccar (PCAR) Laps the Stock Market: Here's Why

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. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. You can find more information on all of these metrics, and much more, on Zacks.com. Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PACCAR Inc. (PCAR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks