In the latest close session, Paccar (PCAR) was up +1.32% at $114.38. The stock exceeded the S&P 500, which registered a loss of 0.74% for the day. Elsewhere, the Dow lost 1.21%, while the tech-heavy Nasdaq lost 0.89%.
Shares of the truck maker witnessed a loss of 0.47% over the previous month, trailing the performance of the Auto-Tires-Trucks sector with its gain of 6.58%, and the S&P 500's gain of 5.39%.
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 $1.32 per share, which would represent a year-over-year decline of 3.65%. Our most recent consensus estimate is calling for quarterly revenue of $7.1 billion, up 1.92% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.59 per share and a revenue of $28.14 billion, representing changes of +11.58% and +7.27%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Paccar. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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, 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 shifted 0.15% downward. Paccar presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Paccar is currently being traded at a Forward P/E ratio of 20.2. This valuation marks a premium compared to its industry average Forward P/E of 19.84.
It is also worth noting that PCAR currently has a PEG ratio of 1.05. 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 0.94 as of yesterday's close.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 202, putting it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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PACCAR Inc. (PCAR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).