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Paccar (PCAR) closed at $102.97 in the latest trading session, marking a +1.47% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.12%. Elsewhere, the Dow saw an upswing of 1.14%, while the tech-heavy Nasdaq appreciated by 1.46%.
Shares of the truck maker witnessed a loss of 6.45% over the previous month, beating the performance of the Auto-Tires-Trucks sector with its loss of 19.81% and underperforming the S&P 500's loss of 4.13%.
Analysts and investors alike will be keeping a close eye on the performance of Paccar in its upcoming earnings disclosure. On that day, Paccar is projected to report earnings of $1.61 per share, which would represent a year-over-year decline of 29.07%. At the same time, our most recent consensus estimate is projecting a revenue of $7.22 billion, reflecting a 12.37% fall from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.57 per share and a revenue of $31.73 billion, indicating changes of -4.18% and +0.52%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Paccar. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 has moved 0.39% lower within the past month. As of now, Paccar holds a Zacks Rank of #3 (Hold).
Digging into valuation, Paccar currently has a Forward P/E ratio of 13.41. Its industry sports an average Forward P/E of 10.81, so one might conclude that Paccar is trading at a premium comparatively.
Meanwhile, PCAR's PEG ratio is currently 2.64. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. PCAR's industry had an average PEG ratio of 1.15 as of yesterday's close.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 168, this industry ranks in the bottom 34% of all industries, numbering over 250.