PCAR Stock Analysis — Paccar Inc.
Sector: Industrials
AI Verdict
Paccar trades at 18.8x next year's earnings with 40.4% growth expected—cheap for the growth on offer if its service moat keeps competitors at bay, but the RSI warns of short-term froth.
Competitive Moat
Paccar manufactures heavy-duty trucks under brands like Kenworth and Peterbilt, with a moat built on dealer service networks and reliability reputation that drive recurring parts and maintenance revenue. Its scale and integrated supply chain make it difficult for new entrants to match uptime guarantees and fleet support.
Summary
Paccar is notable right now for a projected 40.4% jump in earnings over the next year while trading at 18.8x forward earnings.
Where It Stands
Shares are up 29.59% over the past year, the RSI of 66.6 signals elevated pullback risk, and the 18.8x forward P/E is just below the 20x industrials median despite much faster expected growth.
Key Metrics
- RSI: 66.6 — Near Overbought
- Trailing P/E: 26.4x
- Forward P/E: 18.8x
- PEG Ratio: 0.65
- Earnings Growth: +0.4%
- Revenue Growth: -0.1%
- Market Cap: $65.4B
- Dividend Yield: 0.01%
- 1-Year Return: 29.59%
- 52-Week High: $131.88
- 52-Week Low: $92.25
Analyst Consensus
11 Buy · 14 Hold · 1 Sell (26 analysts)
Bull Case
With forward EPS growth forecast at 40.4% and a forward P/E of 18.8x, you're paying a low price for unusually high growth if Paccar's dealer network keeps fleets loyal.
Bear Case
An RSI of 66.6 means the stock is at elevated risk of a pullback, and if the P/E compresses from 18.8x to the sector median of 20x after growth normalizes, recent buyers could see little upside.
Catalyst to Watch
Watch for quarterly earnings beats or misses that confirm or challenge the 40.4% EPS growth consensus.