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PACCAR Inc (PCAR), headquartered in Bellevue, Washington, designs, manufactures, and provides customer support of premium light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt, and DAF nameplates. Valued at $60.5 billion by market cap, the company also designs and manufactures advanced diesel engines, provides financial services, information technology, and distributes truck parts.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and PCAR perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the farm & heavy construction machinery industry. PCAR's strength lies in its powerful brand portfolio, including Kenworth, Peterbilt, and DAF, which are known for quality and reliability in the trucking industry. PCAR's ability to innovate and meet customer demands further solidifies its position as a leader in the industry.
Despite its notable strength, PCAR slipped 7.7% from its 52-week high of $125.50, achieved on Mar. 28. Over the past three months, PCAR stock gained 22.9%, outperforming the Industrial Select Sector SPDR Fund’s (XLI)8.1% gains during the same time frame.
In the longer term, shares of PCAR rose 18.6% on a YTD basis and climbed 18.3% over the past 52 weeks, underperforming XLI’s YTD gains of 21.7% and 26.1% returns over the last year.
However, PCAR has traded above its 50-day moving average since mid-September. It has traded above its 200-day moving average since mid-October, with slight fluctuations.
On Oct. 22, PCAR shares closed down more than 4% after reporting its Q3 results. Its EPS of $1.85 topped Wall Street expectations of $1.82. The company’s revenue was $7.7 billion, topping Wall Street forecasts of $7.6 billion.
PCAR’s rival, AB Volvo (publ) (VLVLY) shares lagged behind the stock, with a marginal loss on a YTD basis and 6.5% returns over the past 52 weeks.
Wall Street analysts are moderately bullish on PCAR’s prospects. The stock has a consensus “Moderate Buy” rating from the 15 analysts covering it, and the mean price target of $117 suggests a potential upside of 1% from current price levels.
