(PCAR) PACCAR - Ratings and Ratios

PACCAR Inc (NASDAQ:PCAR) is a global leader in the design, manufacture, and distribution of light, medium, and heavy-duty commercial trucks. The company operates across the United States, Canada, Europe, Mexico, South America, Australia, and other international markets. Its product portfolio includes iconic brands such as Kenworth, Peterbilt, and DAF, which are renowned for their durability and performance. PACCARs trucks are designed for both on-highway and off-highway applications, catering to the transportation of commercial and consumer goods. The companys distribution network spans over 3,000 independent dealers globally, ensuring widespread availability and support for its customers.

The companys operations are divided into three core segments: Truck, Parts, and Financial Services. The Truck segment is the primary revenue driver, accounting for approximately 70% of total sales. It focuses on manufacturing and distributing trucks under the Kenworth, Peterbilt, and DAF brands. The Parts segment contributes around 20% to the companys revenue, offering a comprehensive range of aftermarket parts for trucks and related commercial vehicles. This segment is supported by a global network of over 600 parts locations, ensuring timely availability of components for fleet operators and independent truck owners.

The Financial Services segment provides a suite of financial and leasing solutions to customers and dealers. Through PacLease, PACCAR offers full-service leasing operations, enabling companies to lease trucks and equipment without the upfront capital investment. This segment also provides equipment financing, retail loans, and inventory financing services. The Financial Services segment contributes around 10% to the companys revenue and plays a critical role in supporting the sales of PACCARs trucks and parts. Additionally, the company manufactures and markets industrial winches under the Braden, Carco, and Gearmatic nameplates, further diversifying its product offerings.

PACCAR Inc was founded in 1905 and is headquartered in Bellevue, Washington. The company has a strong reputation for innovation, quality, and customer service. Its commitment to research and development has enabled it to maintain its position as a market leader in the commercial trucking industry. PACCARs strategic focus on sustainability and technological advancements, such as the development of electric and hybrid powertrains, positions it well to meet the evolving needs of its customers and the broader market.

Based on the provided and , here is a 3-month forecast for PACCAR Inc:

From a technical standpoint, PACCARs stock price is currently trading below its 20, 50, and 200-day moving averages (SMA), indicating bearish momentum. The average true range (ATR) of 3.57 suggests moderate volatility. If the stock fails to break above the 50-day SMA (~100.10), it may face resistance and continue its downtrend. Support levels could be tested around the 200-day SMA (~101.21), but if these levels are breached, the stock may see further declines.

From a fundamental perspective, PACCARs market cap of ~$47.7 billion reflects its position as a large-cap company. The price-to-earnings (P/E) ratio of 11.50 and forward P/E of 11.60 indicate a reasonable valuation compared to its earnings. The price-to-book (P/B) ratio of 2.73 suggests that the stock is trading at a premium relative to its book value. The return on equity (RoE) of 793.67% highlights the companys strong profitability and efficient use of shareholders capital. However, the price-to-sales (P/S) ratio of 1.42 indicates that the stock may be overvalued relative to its revenue.

Combining these factors, the 3-month forecast suggests that PACCARs stock may face short-term headwinds due to its bearish technical indicators. However, its strong fundamental metrics, particularly its high RoE and moderate P/E ratio, could attract investors seeking long-term value. The stock is likely to experience volatility within a range defined by its key moving averages, with potential support around the 200-day SMA and resistance at the 50-day SMA.