The truck maker received a price-target cut from Jefferies to $100 earlier
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%.
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.