Paccar is Tuesday's IBD Stock Of The Day, as the producer of heavy-duty semi-trucks topped fourth-quarter earnings estimates. PCAR stock jumped Tuesday, breaking out past a buy point.
Paccar earnings jumped 77% to $2.64 a share. Revenue grew 21.5% to $7.73 billion.
Paccar stock has gained 10% so far in 2023 after dropping 7% in December.
Through subsidiaries DAF, Kenworth, Peterbilt and Leyland, Paccar produces a worldwide portfolio of light-, medium- and heavy-duty semi-trucks. Paccar also designs and manufactures diesel engines and vehicle performance technology. In addition, the company provides parts distribution and financial services.
Paccar's competitors include Daimler Truck, Ford, Volvo, Traton and Isuzu Motors.
There is also Tesla, which rolled out its first semi-trucks to PepsiCo at the beginning of December. The Tesla Semi will make up Pepsi's newest fleet of delivery trucks as Elon Musk expands his line of EV vehicles. The Tesla Semi is a Class 8 truck, making it a new competitor among the biggest of big rigs.
Class 8 trucks are those capable of hauling loads of more than 33,000 pounds. It's unclear how many Semi vehicles Tesla will make, with key specs still unclear. Paccar estimates its Class 8 truck sales will North America for 2023 will be between 260,000-300,000.
CEO Preston Freight said in a statement Tuesday that Paccar has invested in battery electric long-haul truck technology as well as hydrogen internal combustion and fuel cell powertrains.
Paccar Stock
PCAR stock jumped 8.6% to 111.08 in heavy volume during Tuesday's market trade. Paccar stock cleared a 107.28 buy point from a flat base, according to MarketSmith analysis. PCAR stock already was actionable Tuesday morning from the 50-day line and short-term highs.. Paccar stock has made a decisive move above that key average and now PCAR is outperforming the S&P 500.
The relative strength line for PCAR stock hit a new high on the breakout, a bullish sign. The RS line tracks a stock's performance vs. the S&P 500 index.
However, analysts predict a slowdown in 2023 for Paccar stock. Wall Street forecasts EPS dropping 4% to $8.23 and revenue increasing 2% to $27.85 billion, according to FactSet.
IBD ranks Paccar stock first in the Trucks & Parts-Heavy Duty industry group. PCAR stock has a Composite Rating of 97 out of 99. Its Relative Strength Rating is 84, The RS Rating is an exclusive IBD Stock Checkup gauge for share price movement, with a 1-99 score. The company's EPS Rating is 86.
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