For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Headquartered in Bellevue, WA, PACCAR Inc. is a leading manufacturer of heavy-duty trucks in the world and has substantial manufacturing exposure to light/medium trucks. It also designs and manufactures diesel engines and other powertrain components for use in its own products and for sale to third party manufacturers of trucks and buses. Besides supplying aftermarket parts, PACCAR also offers finance and leasing services.
PCAR sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Automotive - Domestic industry's P/E of 12.4X, shares of Paccar are trading at a forward P/E of 12.4X. PCAR also has a PEG Ratio of 1.2, a Price/Cash Flow ratio of 10.4X, and a Price/Sales ratio of 1.4X.
A company's earnings performance is important for value investors as well. For fiscal 2023, six analysts revised their earnings estimate higher in the last 60 days for PCAR, while the Zacks Consensus Estimate has increased $0.44 to $6.11 per share. PCAR also holds an average earnings surprise of 14.2%.
PCAR should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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