PACCAR-Why Paccar (PCAR) Dipped More Than Broader Market Today

Group 1: Stock Performance - Paccar's stock closed at $98.32, reflecting a -1.28% change from the previous session, underperforming the S&P 500's daily loss of 0.22% [1] - Over the last month, Paccar's shares decreased by 7.11%, which is better than the Auto-Tires-Trucks sector's loss of 20.08% and the S&P 500's loss of 7.48% [1] Group 2: Earnings Forecast - Paccar is expected to report an EPS of$ 1.59, indicating a 29.96% decline from the same quarter last year [2] - The revenue forecast for Paccar is $7.05 billion, representing a 14.34% decrease compared to the corresponding quarter of the prior year [2] - Full-year estimates predict earnings of$ 7.48 per share and revenue of $31.09 billion, reflecting year-over-year changes of -5.32% and -1.51%, respectively [3] Group 3: Analyst Estimates and Rankings - Recent modifications to analyst estimates for Paccar are crucial as they indicate changing near-term business trends, with positive revisions suggesting analysts' confidence in the company's performance [4] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Paccar as 3 (Hold) [6] - Over the past month, there has been a 1.17% decline in the Zacks Consensus EPS estimate for Paccar [6] Group 4: Valuation Metrics - Paccar has a Forward P/E ratio of 13.32, which is a premium compared to the industry average Forward P/E of 11.13 [7] - The company's PEG ratio stands at 1.79, while the Automotive - Domestic industry average PEG ratio is 0.82 [7] Group 5: Industry Context - The Automotive - Domestic industry, part of the Auto-Tires-Trucks sector, has a Zacks Industry Rank of 132, placing it in the bottom 48% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]