PACCAR Stock Looks Set Up to Accelerate Growth

In the last six months, PACCAR stock has added more than 9%

facebook twitter linkedin

Truck maker PACCAR Inc (NASDAQ:PCAR) is flat today, last seen trading at $90.23, after the parent company of both Kenworth and Peterbilt earned a price-target cut from Jefferies to $100 from $110.

The equity has faced some volatility over the last few months, though it most recently bounced off the $83 level, a region that has served as a floor for the stock in the past. However, this latest rally was today cut short at the 40-day moving average, which has kept a tight lid on PCAR since late February. In the last six months, though, PACCAR stock has added 9.6%.

PCAR 40 Day

It appears short-term options traders are put-biased, given the security's Schaeffer's put/call open interest ratio (SOIR), which stands higher than 82% of readings in its 12-month range. 

From a fundamental point of view, PACCAR stock has a fair valuation, trading at forward price-earnings ratio of 13.12, and a price-sales ratio of 1.36. Nevertheless, the company has yet to fully recover from the losses it suffered during the Covid-19 pandemic, despite having grown annual revenues and net income 26% and 43%, respectively, since 2020. For 2020, PCAR's annual revenues and net income dropped 27% and 46%, on the other hand.

Analysts’ estimates have PCAR generating 10.8% revenue and 14.3% earnings growth next year. Overall, PACCAR stock offers a decent option for both short- and long-term investors, due to its valuation and recovery thus far.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 


300x250 - Banner 3 - v1