Peeling Back The Layers: Exploring PACCAR Through Analyst Insights
Across the recent three months, 5 analysts have shared their insights on PACCAR (NASDAQ:PCAR), expressing a variety of opinions spanning from bullish to bearish.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 1 | 4 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 2 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 1 | 1 | 0 | 0 |
Insights from analysts' 12-month price targets are revealed, presenting an average target of $117.6, a high estimate of $130.00, and a low estimate of $107.00. Observing a downward trend, the current average is 4.58% lower than the prior average price target of $123.25.
Deciphering Analyst Ratings: An In-Depth Analysis
The analysis of recent analyst actions sheds light on the perception of PACCAR by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Jamie Cook | Truist Securities | Lowers | Hold | $107.00 | $115.00 |
| Jamie Cook | Truist Securities | Lowers | Hold | $115.00 | $121.00 |
| Kyle Menges | Citigroup | Announces | Neutral | $115.00 | - |
| Jamie Cook | Truist Securities | Raises | Hold | $121.00 | $117.00 |
| Tami Zakaria | JP Morgan | Lowers | Overweight | $130.00 | $140.00 |
Key Insights:
- Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to PACCAR. This offers insight into analysts' perspectives on the current state of the company.
- Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of PACCAR compared to the broader market.
- Price Targets: Understanding forecasts, analysts offer estimates for PACCAR's future value. Examining the current and prior targets provides insight into analysts' changing expectations.
To gain a panoramic view of PACCAR's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
Stay up to date on PACCAR analyst ratings.
Get to Know PACCAR Better
Paccar is a leading manufacturer of medium- and heavy-duty trucks under the premium brands Kenworth and Peterbilt (primarily sold in the NAFTA region and Australia), and DAF trucks (sold in Europe and South America). The company's trucks are sold through more than 2,300 independent dealers globally. Paccar Financial Services provides retail and wholesale financing for customers and dealers, respectively. The company commands roughly 30% of the Class 8 market share in North America and 17% of the heavy-duty market share in Europe.
PACCAR: Financial Performance Dissected
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
Revenue Growth: PACCAR's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 3.2%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.
Net Margin: PACCAR's net margin is impressive, surpassing industry averages. With a net margin of 13.67%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): PACCAR's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 7.3%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): PACCAR's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.94%, the company showcases efficient use of assets and strong financial health.
Debt Management: PACCAR's debt-to-equity ratio is below the industry average. With a ratio of 0.83, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
Understanding the Relevance of Analyst Ratings
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.