Paccar (PCAR) Stock Falls Amid Market Uptick: What Investors Need to Know
Paccar (PCAR) closed at $94.05 in the latest trading session, marking a -0.58% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.08%. On the other hand, the Dow registered a loss of 0.31%, and the technology-centric Nasdaq increased by 0.02%.
Shares of the truck maker have depreciated by 1.26% over the course of the past month, underperforming the Auto-Tires-Trucks sector's gain of 0.87% and the S&P 500's gain of 3.52%.
Analysts and investors alike will be keeping a close eye on the performance of Paccar in its upcoming earnings disclosure. The company's earnings report is set to go public on January 23, 2024. 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. At the same time, our most recent consensus estimate is projecting a revenue of $8.18 billion, reflecting a 5.81% rise from the equivalent quarter last year.
Any recent changes to analyst estimates for Paccar should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.35% higher. Paccar is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Paccar is holding a Forward P/E ratio of 12.51. This expresses a premium compared to the average Forward P/E of 11.27 of its industry.
It is also worth noting that PCAR currently has a PEG ratio of 1.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Automotive - Domestic industry had an average PEG ratio of 1.25 as trading concluded yesterday.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 33% 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.
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
