Decoding 9 Analyst Evaluations For PACCAR

During the last three months, 9 analysts shared their evaluations of PACCAR PCAR, revealing diverse outlooks from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for PACCAR, revealing an average target of $115.33, a high estimate of $129.00, and a low estimate of $99.00. This upward trend is evident, with the current average reflecting a 2.57% increase from the previous average price target of $112.44.

Diving into Analyst Ratings: An In-Depth Exploration

In examining recent analyst actions, we gain insights into how financial experts perceive PACCAR. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

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: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of PACCAR compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of PACCAR's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into PACCAR's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on PACCAR analyst ratings.

Unveiling the Story Behind PACCAR

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

Negative Revenue Trend: Examining PACCAR's financials over 3 months reveals challenges. As of 30 September, 2024, the company experienced a decline of approximately -5.25% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: PACCAR's net margin excels beyond industry benchmarks, reaching 11.8%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): PACCAR's ROE stands out, surpassing industry averages. With an impressive ROE of 5.35%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.3%, the company showcases effective utilization of assets.

Debt Management: PACCAR's debt-to-equity ratio is below the industry average at 0.83, reflecting a lower dependency on debt financing and a more conservative financial approach.

What Are Analyst Ratings?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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