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Based in Bellevue, Washington, PACCAR Inc (PCAR) is a $60 billion company specializing in the design, manufacturing, and support of premium light, medium, and heavy-duty trucks under the Kenworth, Peterbilt, and DAF brands. PACCAR also develops advanced diesel engines, offers financial services, provides IT solutions, and distributes truck parts.
Shares of this heavy-duty truck titan have underperformed the broader market considerably over the past year. PCAR has gained 31.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 35.9%. In 2024, PCAR stock is up 19.2%, while the SPX is up 25.8% on a YTD basis.
Narrowing the focus, PCAR has also trailed the Industrial Select Sector SPDR Fund (XLI). The exchange-traded fund has gained about 39.6% over the past year. The ETF’s 25.6% returns on a YTD basis outshine the stock’s returns over the same time frame.
On Nov. 6, PCAR shares surged more than 7% following Donald Trump's 2024 presidential election victory, as his pro-business stance and support for American industry are expected to boost capital expenditures and investment in the industrial sector.
For the current fiscal year, ending in December, analysts expect PCAR’s EPS to decline 17% to $7.98 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 16 analysts covering PCAR stock, the consensus rating is a “Moderate Buy.” That’s based on four “Strong Buy” ratings, one “Moderate Buy,” 10 “Holds, and one “Strong Sell.”
This configuration is slightly less bullish than three months ago, when five analysts assigned “Strong Buy” to the stock.
On Nov. 4, RBC Capital analyst Nick Housden reaffirmed a “Sector-Perform” rating on PACCAR and maintained a price target of $119.
While PCAR currently trades above its mean price target of $114.15, the Street-high price target of $126 suggests an ambitious upside potential of 8.2%.
On the date of publication, Kritika Sarmah 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.
