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PACCAR Inc. (PCAR), headquartered in Bellevue, Washington, is a global leader in designing, manufacturing, and customer support of high-quality premium trucks under the Kenworth, Peterbilt, and DAF nameplates. With a robust market presence and a market cap of $55.54 billion, PACCAR stands as a dominant force in the commercial vehicle industry. Its commitment to advanced technology and customer service solidifies its position as a key player in the global transportation sector.
Companies worth $10 billion or more are generally considered "large-cap" stocks, and PACCAR exemplifies this category, signifying its substantial size, stability, and influence in the commercial vehicle industry. PCAR remains a key player in the global market by continually enhancing its range of high-quality trucks and driving innovation in electric and autonomous vehicle technologies.
Shares of PCAR have dropped 15.6% from their 52-week high of $125.50, reached on Mar. 28. Over the past three months, PCAR's shares have declined 14.9%, underperforming the broader Nasdaq Composite ($NASX), which gained 7.9% during the same period.
In the longer term, PCAR is up 8.5% YTD, and the shares have gained 35% over the past 52 weeks. In comparison, the Nasdaq is up 17.8% in 2024 and 31% over the past year.
To confirm the recent bearish price trend, PCAR has been trading below its 50-day moving average since mid-April.
PACCAR reported Q1 earnings on Apr. 30, surpassing expectations due to high demand for trucks and aftermarket parts. Additionally, the company announced an 11% hike in its quarterly dividend payment on the same day. However, the stock declined 6.6% on the earnings release day and lost marginally the following day.
In contrast, rival AB Volvo (VLVLY) is underperforming both PCAR and NASX. VLVLY shares have declined 1.8% on a YTD basis.
Analysts are optimistic about PCAR's prospects despite its recent underperformance compared to NASX. The stock has a consensus rating of "Moderate Buy" from 16 analysts in coverage. The mean price target of $122.92 reflects a 16% premium over current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
