In the latest trading session, Paccar (PCAR) closed at $124.57, marking a +1.05% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.42% for the day. On the other hand, the Dow registered a gain of 0.29%, and the technology-centric Nasdaq increased by 0.29%.
Prior to today's trading, shares of the truck maker had gained 4.85% outpaced the Auto-Tires-Trucks sector's gain of 0.6% and the S&P 500's gain of 2.2%.
The investment community will be closely monitoring the performance of Paccar in its forthcoming earnings report. The company is scheduled to release its earnings on July 28, 2026. The company is predicted to post an EPS of $1.32, indicating a 3.65% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.1 billion, up 1.92% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $5.58 per share and a revenue of $27.7 billion, demonstrating changes of +11.38% and +5.59%, respectively, from the preceding 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.15% lower within the past month. Paccar presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Paccar has a Forward P/E ratio of 22.09 right now. This represents a premium compared to its industry average Forward P/E of 18.19.
It's also important to note that PCAR currently trades at a PEG ratio of 1.15. 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. By the end of yesterday's trading, the Automotive - Domestic industry had an average PEG ratio of 1.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 43, placing it within the top 18% of over 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.
To follow PCAR in the coming trading sessions, be sure to utilize Zacks.com.
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PACCAR Inc. (PCAR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).