In the latest trading session, Paccar (PCAR) closed at $119.69, marking a +1.06% move from the previous day. This move outpaced the S&P 500's daily loss of 0.26%. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq lost 0.97%.
Prior to today's trading, shares of the truck maker had gained 4.85% outpaced the Auto-Tires-Trucks sector's loss of 2.65% and the S&P 500's gain of 0.23%.
Market participants will be closely following the financial results of Paccar in its upcoming release. The company is expected to report EPS of $1.32, down 3.65% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.1 billion, up 1.92% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.59 per share and a revenue of $27.7 billion, indicating changes of +11.58% and +5.59%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Paccar. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.21% lower. Paccar is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Paccar is currently being traded at a Forward P/E ratio of 21.19. Its industry sports an average Forward P/E of 19.26, so one might conclude that Paccar is trading at a premium comparatively.
One should further note that PCAR currently holds a PEG ratio of 1.1. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Automotive - Domestic industry had an average PEG ratio of 0.92 as trading concluded yesterday.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 169, this industry ranks in the bottom 31% of all industries, numbering over 250.
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).