Paccar (PCAR) Laps the Stock Market: Here's Why

Paccar (PCAR) closed the most recent trading day at $124.51, moving +1.95% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 1.06%. Elsewhere, the Dow gained 1.18%, while the tech-heavy Nasdaq added 1.4%.

Shares of the truck maker witnessed a loss of 8.41% over the previous month, trailing the performance of the Auto-Tires-Trucks sector with its gain of 7.67%, and the S&P 500's gain of 2.46%.

The investment community will be closely monitoring the performance of Paccar in its forthcoming earnings report. The company's upcoming EPS is projected at $1.61, signifying a 43.75% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $7.54 billion, reflecting a 23.48% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.89 per share and a revenue of $28.53 billion, representing changes of +17.56% and +8.74%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Paccar. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.68% higher within the past month. Paccar is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Paccar has a Forward P/E ratio of 20.75 right now. This valuation marks a premium compared to its industry average Forward P/E of 18.64.

It is also worth noting that PCAR currently has a PEG ratio of 1.4. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Automotive - Domestic industry currently had an average PEG ratio of 1.11 as of yesterday's close.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 46, finds itself in the top 19% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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