Why Paccar (PCAR) Outpaced the Stock Market Today
Paccar (PCAR) closed at $95.38 in the latest trading session, marking a +1.38% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.88%. On the other hand, the Dow registered a gain of 0.54%, and the technology-centric Nasdaq increased by 1.35%.
Shares of the truck maker witnessed a loss of 1.9% over the previous month, beating the performance of the Auto-Tires-Trucks sector with its loss of 6.42% and underperforming the S&P 500's gain of 0.64%.
Market participants will be closely following the financial results of Paccar in its upcoming release. The company plans to announce its earnings on January 23, 2024. It is anticipated that the company will report an EPS of $2.17, marking a 23.3% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.18 billion, up 5.81% from the year-ago period.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Paccar. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.35% increase. Right now, Paccar possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Paccar is presently being traded at a Forward P/E ratio of 12.44. This valuation marks a premium compared to its industry's average Forward P/E of 11.39.
We can additionally observe that PCAR currently boasts a PEG ratio of 1.24. 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. PCAR's industry had an average PEG ratio of 1.24 as of yesterday's close.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 169, finds itself in the bottom 33% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
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 Report
