PCAR's post-earnings price history has been mostly positive
PACCAR Inc (NASDAQ:PCAR) has been climbing since the broad-market pullback in March, now up 12% for the month. At last check, PCAR is up 1.1% at $68.39 thanks to a $15 price-target hike from Citigroup to $80, just ahead of the commercial vehicle manufacturer’s first-quarter earnings report, due out before the open tomorrow on Tuesday, April 21. Below, we'll dig into how PACCAR has been faring ahead of its quarterly report as well as a look back at the equity’s previous closes.
On the charts, PCAR has been on the rise since hitting a three-year low of $49.11 on March 23. Although the shares have toppled their 50-day moving average four times in the last six days, overhead resistance looms at the $70 level. Plus, PCAR is still battling a 13.5% year-to-date deficit.
Despite the rally, analysts lean toward skepticism toward PCAR. Of the 17 brokerages covering the security, seven recommend a “strong buy” while the remaining sport a “hold” or worse. Echoing this is the consensus 12-month target price of $71.16 which is a slim 5.2% and a level PCAR has failed to reach since late-February.
In the options pits, PCAR's 10-day put/call volume ratio of 8.76 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits in the elevated 83rd percentile of readings from the past 12 months, suggesting the appetite for long puts is much healthier as of late.
Looking back, the stock has seen positive returns following the majority of its earnings reports during the past two years. In fact, six of the eight next-day sessions were positive for PACCAR stock. The security averaged a 3.2% swing, regardless of direction, the day after its last eight reports. This time around, the options pits are pricing in a higher 7% shift, regardless of direction.