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Why Paccar (PCAR) Dipped More Than Broader Market Today

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Paccar (PCAR - Free Report) closed the latest trading day at $98.32, indicating a -1.28% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 0.22%. Meanwhile, the Dow experienced a drop of 0.03%, and the technology-dominated Nasdaq saw a decrease of 0.33%.

The truck maker's shares have seen a decrease of 7.11% over the last month, surpassing the Auto-Tires-Trucks sector's loss of 20.08% and the S&P 500's loss of 7.48%.

The investment community will be paying close attention to the earnings performance of Paccar in its upcoming release. The company is forecasted to report an EPS of $1.59, showcasing a 29.96% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $7.05 billion, indicating a 14.34% decline compared to the corresponding quarter of the prior year.

PCAR's full-year Zacks Consensus Estimates are calling for earnings of $7.48 per share and revenue of $31.09 billion. These results would represent year-over-year changes of -5.32% and -1.51%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Paccar. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

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, 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 past month, there's been a 1.17% fall in the Zacks Consensus EPS estimate. Paccar is currently a Zacks Rank #3 (Hold).

Digging into valuation, Paccar currently has a Forward P/E ratio of 13.32. This expresses a premium compared to the average Forward P/E of 11.13 of its industry.

Meanwhile, PCAR's PEG ratio is currently 1.79. 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. The Automotive - Domestic industry had an average PEG ratio of 0.82 as trading concluded yesterday.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 132, which puts it in the bottom 48% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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