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Paccar (PCAR) Gains As Market Dips: What You Should Know

In the latest trading session, Paccar (PCAR) closed at $73.05, marking a +1.18% move from the previous day. This change outpaced the S&P 500's 0.47% loss on the day. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, lost 15.51%.

Heading into today, shares of the truck maker had lost 0.92% over the past month, lagging the Auto-Tires-Trucks sector's gain of 5.21% and outpacing the S&P 500's loss of 2.53% in that time.

Paccar will be looking to display strength as it nears its next earnings release. In that report, analysts expect Paccar to post earnings of $1.71 per share. This would mark year-over-year growth of 48.7%. Our most recent consensus estimate is calling for quarterly revenue of $7.63 billion, up 24.99% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.11 per share and revenue of $30.75 billion. These totals would mark changes of +6.26% and +12.57%, respectively, from last 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.29% lower. Paccar is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Paccar is holding a Forward P/E ratio of 11.82. For comparison, its industry has an average Forward P/E of 11.82, which means Paccar is trading at a no noticeable deviation to the group.

We can also see that PCAR currently has a PEG ratio of 1.18. 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. Automotive - Domestic stocks are, on average, holding a PEG ratio of 1.6 based on yesterday's closing prices.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 161, which puts it in the bottom 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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