In This Article:
Paccar (PCAR) closed the latest trading day at $105.18, indicating a +0.46% change from the previous session's end. This move lagged the S&P 500's daily gain of 1.1%. At the same time, the Dow added 0.91%, and the tech-heavy Nasdaq gained 1.35%.
Prior to today's trading, shares of the truck maker had lost 10.16% over the past month. This has lagged the Auto-Tires-Trucks sector's gain of 12.47% and the S&P 500's gain of 0.22% in that time.
The investment community will be paying close attention to the earnings performance of Paccar in its upcoming release. The company is slated to reveal its earnings on January 28, 2025. In that report, analysts expect Paccar to post earnings of $1.67 per share. This would mark a year-over-year decline of 38.15%. At the same time, our most recent consensus estimate is projecting a revenue of $7.41 billion, reflecting a 13.78% fall from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.98 per share and a revenue of $31.61 billion, indicating changes of -16.96% and -5.12%, respectively, from the former year.
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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Paccar is holding a Zacks Rank of #4 (Sell) right now.
With respect to valuation, Paccar is currently being traded at a Forward P/E ratio of 13.12. Its industry sports an average Forward P/E of 11.61, so one might conclude that Paccar is trading at a premium comparatively.
We can additionally observe that PCAR currently boasts a PEG ratio of 1.64. 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. As the market closed yesterday, the Automotive - Domestic industry was having an average PEG ratio of 1.73.