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In the latest trading session, Paccar (PCAR) closed at $110.11, marking a -0.2% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.88% for the day. On the other hand, the Dow registered a gain of 1.24%, and the technology-centric Nasdaq increased by 0.65%.

The the stock of truck maker has risen by 5.38% in the past month, leading the Auto-Tires-Trucks sector's loss of 0.28% and the S&P 500's gain of 1.17%.

The investment community will be closely monitoring the performance of Paccar in its forthcoming earnings report. The company is scheduled to release its earnings on January 28, 2025. In that report, analysts expect Paccar to post earnings of $1.68 per share. This would mark a year-over-year decline of 37.78%. Simultaneously, our latest consensus estimate expects the revenue to be $7.44 billion, showing a 13.4% drop compared to the year-ago quarter.

Investors might also notice recent changes to analyst estimates for Paccar. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.47% higher within the past month. Currently, Paccar is carrying a Zacks Rank of #2 (Buy).

With respect to valuation, Paccar is currently being traded at a Forward P/E ratio of 14.14. This expresses no noticeable deviation compared to the average Forward P/E of 14.14 of its industry.

Also, we should mention that PCAR has a PEG ratio of 2.78. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Domestic was holding an average PEG ratio of 1.77 at yesterday's closing price.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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