While Tesla grabs headlines with its Tesla Semi electric truck, Paccar — the big rig behemoth behind Peterbilt, Kenworth and DAF — continues to bore down on a breakout. Impressive growth and a stellar 96 Composite Rating land PCAR stock a spot on the IBD Breakout Stocks Index.
While Paccar certainly has the Tesla Semi and other long-haul EV trucks on its radar, the Bellevue, Wash. -based company takes a deliberate and methodical approach to this still-emerging segment of the trucking industry.
An aggressive tech pioneer at heart, Tesla and CEO Elon Musk weathered years of delays before the company delivered the first units of the Tesla Semi class 8 electric truck in December. PepsiCo has now also rolled out a fleet of Tesla Semis, which have up to a 450 -mile range.
By no means ignoring the changing landscape, Paccar exhibited electric, connected and autonomous trucks at CES 2022. In May, Paccar also announced it is expanding its collaboration with Toyota on hydrogen fuel cell trucks. The deal builds on Paccar and Toyota's ongoing development and commercialization of zero-emission versions of the Kenworth T680 and Peterbilt 579 models featuring Toyota's hydrogen fuel cell powertrain kit.
Yet, as reported in FreightWaves in January, Paccar continues to see gradual, rather than explosive, growth in EV trucks in the near and midterm future.
See Who Joins Paccar On The IBD Breakout Stocks Index
Paccar Vs. Tesla Stock
Given the difference in scope and focus between the two companies, a Paccar vs. Tesla matchup is not an apples-to-apples comparison. But the table below shows how the two companies stack up in terms of some key fundamental and technical factors.
Paccar ties Tesla stock with a 96 Composite Rating, which shows both companies are outpacing 96% of all stocks in terms of key stock-picking factors.
In Q2, Paccar delivered 70% EPS growth to $2.33 a share. Paccar has now posted average EPS growth of 81.2% over the last three quarters. By comparison, Tesla has generated average earnings growth of 13.1% over the same period.
Paccar also outpaces Tesla in terms of forward-looking estimates. Wall Street forecasts 44% EPS growth for Paccar in Q3 and a 48% gain for the year. Both estimates top analysts' estimates for Tesla, with slowdowns expected for both periods.
While Paccar did not join TSLA stock on this month's list of new buys by the best mutual funds, 43 funds with an A+ rating from IBD own shares in PCAR stock.
Paccar earns moniker of large cap with a market capitalization of $44.3 billion. But that pales in comparison to Tesla stock's market cap of more than $763 billion.
| Company | Symbol | Comp Rating | EPS % Chg Last Qtr | EPS Est Cur Qtr % | EPS Est Cur Yr % | EPS Rating | RS Rating | Ind Group RS | SMR Rating |
|---|---|---|---|---|---|---|---|---|---|
| Paccar | PCAR | 96 | 70 | 44 | 48 | 92 | 90 | C+ | A |
| Tesla | TSLA | 96 | 20 | -24 | -18 | 93 | 93 | B+ | A |
PCAR Stock Looks To Keeps On Trucking Toward Buy Point
Paccar was featured in the IBD Stock Analysis on April 28 ahead of a breakout in early June. That move sparked a 17% gain in just seven weeks before PCAR stock pulled back to form its consolidation, a still early stage flat base. The new buy point is 90.05.
On Tuesday, Paccar burned some rubber trying to hold near its 10-week line as the market indexes continued their decline. On Wednesday, PCAR stock reversed higher off its lows, closing right at its 21-day exponential moving average.
Meanwhile, with a fleet of Tesla Semis now on the road delivering Pepsis, Tesla stock continues to work on a cup with handle showing a 278.98 entry. The EV pioneer currently trades just below its 50-day moving average.
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Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
