In This Article:
In the latest market close, Paccar (PCAR) reached $98.19, with a -1.35% movement compared to the previous day. The stock's change was less than the S&P 500's daily loss of 0.33%. Elsewhere, the Dow lost 0.37%, while the tech-heavy Nasdaq lost 0.53%.
Shares of the truck maker have depreciated by 6.13% over the course of the past month, underperforming the Auto-Tires-Trucks sector's loss of 4.57% and the S&P 500's loss of 4.03%.
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. Alongside, our most recent consensus estimate is anticipating revenue of $7.05 billion, indicating a 14.34% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.39 per share and revenue of $31.09 billion, which would represent changes of -6.46% and -1.51%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Paccar. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 2.38% fall in the Zacks Consensus EPS estimate. As of now, Paccar holds a Zacks Rank of #3 (Hold).
In the context of valuation, Paccar is at present trading with a Forward P/E ratio of 13.47. This represents a premium compared to its industry's average Forward P/E of 11.02.
Investors should also note that PCAR has a PEG ratio of 1.81 right now. 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. By the end of yesterday's trading, the Automotive - Domestic industry had an average PEG ratio of 0.79.