Paccar stock broke out of flat base and hit an all-time high after the truck maker crushed earnings expectations and reported record numbers across the board.
Paccar designs and manufactures light, medium and heavy-duty trucks under Kenworth, Peterbilt and DAF brands. It also makes diesel engines, provides financial and technology services to its businesses and distributes truck parts. Paccar sells its products in more than 100 countries via 2,200 locations.
The truck maker showcased several products and technologies at the CES industry show in Las Vegas this month, including its fuel cell electric vehicle and battery-powered trucks, plus its EV charging products.
Paccar Stock Breaks Out
Paccar stock broke out in heavy volume past a 98.47 buy point Tuesday, following the company's better-than-expected fourth-quarter earnings report. Shares are in the 5% buy zone to 103.39. The relative strength line is also near new highs.
Paccar pulled back in the base but found support at its 50-day moving average earlier this month. The turnaround came after news that Paccar was one of several companies joining forces to build a battery plant in Mississippi for EV trucks. After that, several analysts raised their price targets on the stock.
Truck Maker Rocks Earnings
Paccar's fourth-quarter earnings grew 53% and sales rose 11%. Both marked slowing growth from the previous few quarters. Still, the outlook is sunny.
Preston Feight, chief executive officer, said the company posted record sales and earnings for 2023. The truck company also delivered a record 204,200 vehicles in 2023 worldwide, a good sign for the economically sensitive trucking industry.
Analysts see 2025 earnings stagnating in 2025, with zero EPS growth.
Paccar holds a 96 out of 99 IBD Composite Rating.
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