In the latest close session, Paccar (PCAR) was down 2.08% at $126.54. The stock's performance was behind the S&P 500's daily gain of 0.72%. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq gained 1.57%.
The truck maker's shares have seen a decrease of 3.47% over the last month, not keeping up with the Auto-Tires-Trucks sector's gain of 6.76% and the S&P 500's gain of 3.68%.
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 $1.61 per share, which would represent year-over-year growth of 43.75%. Meanwhile, our latest consensus estimate is calling for revenue of $7.54 billion, up 23.48% from the prior-year quarter.
PCAR's full-year Zacks Consensus Estimates are calling for earnings of $5.89 per share and revenue of $28.53 billion. These results would represent year-over-year changes of +17.56% and +8.74%, respectively.
Investors might also notice recent changes to analyst estimates for Paccar. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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. Over the past month, there's been a 4.06% rise in the Zacks Consensus EPS estimate. Currently, Paccar is carrying a Zacks Rank of #3 (Hold).
Investors should also note Paccar's current valuation metrics, including its Forward P/E ratio of 21.95. This expresses a premium compared to the average Forward P/E of 17.99 of its industry.
We can also see that PCAR currently has a PEG ratio of 1.02. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Domestic was holding an average PEG ratio of 0.95 at yesterday's closing price.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 67, positioning it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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).