Forecasting The Future: 5 Analyst Projections For PACCAR

PACCAR PCAR has been analyzed by 5 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over 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 $125.4, a high estimate of $140.00, and a low estimate of $115.00. Observing a 0.72% increase, the current average has risen from the previous average price target of $124.50.

Exploring Analyst Ratings: An In-Depth Overview

A comprehensive examination of how financial experts perceive PACCAR is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to PACCAR. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of PACCAR compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for PACCAR's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of PACCAR's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on PACCAR analyst ratings.

Delving into PACCAR's Background

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.

Key Indicators: PACCAR's Financial Health

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: Over the 3 months period, PACCAR showcased positive performance, achieving a revenue growth rate of 3.2% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: PACCAR's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 13.67% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): PACCAR's ROE stands out, surpassing industry averages. With an impressive ROE of 7.3%, the company demonstrates effective use of equity capital and strong financial performance.

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 at 0.83, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Core of Analyst Ratings: What Every Investor Should Know

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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