Paccar (PCAR) closed at $76.71 in the latest trading session, marking a +0.68% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.62%. At the same time, the Dow added 0.5%, and the tech-heavy Nasdaq lost 5.66%.
Prior to today's trading, shares of the truck maker had gained 5.34% over the past month. This has lagged the Auto-Tires-Trucks sector's gain of 15.63% and outpaced the S&P 500's gain of 3.44% in that time.
Paccar will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.12, up 53.62% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.97 billion, up 17.42% from the year-ago period.
PCAR's full-year Zacks Consensus Estimates are calling for earnings of $7.83 per share and revenue of $31.24 billion. These results would represent year-over-year changes of +36.17% and +14.37%, respectively.
Investors should also note any recent changes to analyst estimates for Paccar. These revisions help to show the ever-changing nature of near-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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. Paccar currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Paccar is currently trading at a Forward P/E ratio of 9.73. This represents a discount compared to its industry's average Forward P/E of 10.66.
Also, we should mention that PCAR has a PEG ratio of 0.97. 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. PCAR's industry had an average PEG ratio of 1.28 as of yesterday's close.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% 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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