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Paccar (PCAR) closed at $108.50 in the latest trading session, marking a -0.97% move from the prior day. This move lagged the S&P 500's daily gain of 0.16%. Meanwhile, the Dow experienced a rise of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.06%.
The truck maker's shares have seen a decrease of 5.04% over the last month, not keeping up with the Auto-Tires-Trucks sector's loss of 2.03% and the S&P 500's loss of 2.8%.
Market participants will be closely following the financial results of Paccar in its upcoming release. The company plans to announce its earnings on January 28, 2025. On that day, Paccar is projected to report earnings of $1.67 per share, which would represent a year-over-year decline of 38.15%. 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.
Any recent changes to analyst estimates for Paccar should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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, the Zacks Consensus EPS estimate has remained steady. Paccar is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Paccar is currently trading at a Forward P/E ratio of 14.11. For comparison, its industry has an average Forward P/E of 14.11, which means Paccar is trading at no noticeable deviation to the group.
It's also important to note that PCAR currently trades at a PEG ratio of 1.76. 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 of the close of trade yesterday, the Automotive - Domestic industry held an average PEG ratio of 1.69.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 39, positioning it in the top 16% of all 250+ industries.