Beyond The Numbers: 10 Analysts Discuss PACCAR Stock

During the last three months, 10 analysts shared their evaluations of PACCAR PCAR, revealing diverse outlooks 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.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $117.2, a high estimate of $140.00, and a low estimate of $97.00. Witnessing a positive shift, the current average has risen by 13.92% from the previous average price target of $102.88.

Exploring Analyst Ratings: An In-Depth Overview

The perception of PACCAR by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to PACCAR. This information provides a snapshot of how analysts perceive 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: Analysts gauge the dynamics of price targets, providing estimates for the future value of PACCAR's stock. This comparison reveals trends in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of PACCAR's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on PACCAR analyst ratings.

Discovering PACCAR: A Closer Look

Paccar is a leading manufacturer of medium- and heavy-duty trucks under the premium brands Kenworth and Peterbilt, which are primarily sold in the NAFTA region and Australia, and DAF trucks, which are sold in Europe and South America. The company's trucks are sold through over 2,300 independent dealers globally. Paccar Financial Services provides retail and wholesale financing for customers and dealers, respectively. The company commands approximately 30% of the Class 8 market share in North America and 17% of the heavy-duty market share in Europe.

Key Indicators: PACCAR's Financial Health

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Over the 3 months period, PACCAR showcased positive performance, achieving a revenue growth rate of 11.65% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: PACCAR's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 15.61%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 8.89%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): PACCAR's ROA excels beyond industry benchmarks, reaching 3.59%. This signifies efficient management of assets and strong financial health.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.91.

How Are Analyst Ratings Determined?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.