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The most recent trading session ended with Paccar (PCAR) standing at $112.34, reflecting a -0.59% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.38%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq added 1.24%.
The truck maker's stock has climbed by 0.67% in the past month, falling short of the Auto-Tires-Trucks sector's gain of 18.55% and the S&P 500's gain of 1.17%.
The upcoming earnings release of Paccar will be of great interest to investors. The company's earnings report is expected on January 28, 2025. The company's earnings per share (EPS) are projected to be $1.67, reflecting a 38.15% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.41 billion, indicating a 13.78% decrease compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.98 per share and a revenue of $31.61 billion, signifying shifts of -16.96% and -5.12%, respectively, from the last year.
Any recent changes to analyst estimates for Paccar should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Paccar currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Paccar is currently being traded at a Forward P/E ratio of 14.16. This represents a premium compared to its industry's average Forward P/E of 12.72.
Meanwhile, PCAR's PEG ratio is currently 1.77. 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. By the end of yesterday's trading, the Automotive - Domestic industry had an average PEG ratio of 1.83.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 130, putting it in the bottom 49% of all 250+ industries.