PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Canada, Europe, Mexico, South America, Australia, and internationally. It operates through three segments: Truck, Parts, and Financial Services. The Truck segment designs, manufactures, and distributes trucks for the over-the-road and off-highway hauling of commercial and consumer goods. It sells its trucks through a network of independent dealers under the Kenworth, Peterbilt, and DAF nameplates. The Parts segment distributes aftermarket parts for trucks and related commercial vehicles. The Financial Services segment conducts full-service leasing operations under the PacLease trade name, as well as provides finance and leasing products and services to customers and dealers. This segment also offers equipment financing and administrative support services for its franchisees; retail loan and leasing services for small, medium, and large commercial trucking companies, as well as independent owners/operators and other businesses; and truck inventory financing services to independent dealers. In addition, this segment offers loans and leases directly to customers for the acquisition of trucks and related equipment. The company also manufactures and markets industrial winches under the Braden, Carco, and Gearmatic nameplates. PACCAR Inc was founded in 1905 and is headquartered in Bellevue, Washington.

PACCAR выглядит финансово устойчивой компанией с сильной ликвидностью и умеренной долговой нагрузкой, но рынок уже закладывает в цену заметно улучшенное качество бизнеса. P/E и P/FCF находятся около медианы отрасли, что не выглядит перегретым, однако P/S и P/B выше отраслевых ориентиров, поэтому часть будущего оптимизма уже отражена в оценке. При этом динамика мультипликаторов не полностью поддерживает дальнейшее расширение оценки: P/S и P/B остаются повышенными, а P/E в последние периоды колебался, не показывая устойчивого снижения при ускорении роста. С точки зрения рентабельности картина смешанная: операционная маржа и чистая маржа выше отрасли, что является сильной стороной, но gross margin ниже медианы и снижается по годам, указывая на давление на валовую эффективность. ROE и ROA ниже отраслевых ориентиров и также ухудшались по сравнению с более ранними периодами, что ограничивает аргументы в пользу более высокой премии к оценке. ROI, напротив, выглядит сильным и существенно выше медианы, что говорит о неплохой отдаче на вложенный капитал и поддерживает инвестиционный кейс. Баланс у компании крепкий: debt/equity фактически нулевой, current ratio и quick ratio выше отрасли, cash on hand высокий, а долгосрочный долг выглядит управляемым. Однако высокая ликвидность и низкий левередж сами по себе не компенсируют то, что часть доходности капитала и валовой маржи ослабла. Выручка, прибыль и операционная прибыль остаются значительными и в целом стабильными, но по годам заметен неравномерный тренд без явного ускорения, которое обычно оправдывает более агрессивный апсайд. Дивидендная доходность очень низкая, поэтому дивидендный фактор почти не добавляет поддержки оценке для инвестора, ориентированного на доход. В сумме фундаментал скорее качественный и защитный, чем явно недооценённый, поэтому целесообразна умеренная консервативная корректировка вниз относительно текущего оперативного ориентира. Для инвестора это означает, что бизнес остаётся сильным по балансу и операционной устойчивости, но текущая цена уже учитывает значительную часть этих преимуществ.

PACCAR Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, незначительно упал. Рынок на стороне быков.

Weak index, slightly down. The market is on the bulls' side.

Средний индекс, незначительно упал. Приток средств в лонги снизился, но остается положительным.

Medium index, slightly down. The inflow of funds into longs has decreased, but remains positive.

PACCAR финансово устойчив, но дороговат по P/S и P/B; сильный баланс и маржа поддерживают оценку, однако ослабление ROE/ROA и валовой маржи ограничивает апсайд.

Paccar (PCAR) closed the latest trading day at $104.02, indicating a +0.4% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily loss of 0.43%. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, lost 0.9%.
Shares of the truck maker witnessed a loss of 10.87% over the previous month, trailing the performance of the Auto-Tires-Trucks sector with its gain of 13.14% and the S&P 500's loss of 1.98%.
The investment community will be closely monitoring the performance of Paccar in its forthcoming earnings report. The company is scheduled to release its earnings on January 28, 2025. In that report, analysts expect Paccar to post earnings of $1.67 per share. This would mark a year-over-year decline of 38.15%. Alongside, our most recent consensus estimate is anticipating revenue of $7.41 billion, indicating a 13.78% downward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.92 per share and revenue of $31.61 billion, indicating changes of -17.59% and -5.12%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Paccar. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Paccar holds a Zacks Rank of #4 (Sell).
From a valuation perspective, Paccar is currently exchanging hands at a Forward P/E ratio of 13.08. This denotes a premium relative to the industry's average Forward P/E of 11.52.
We can also see that PCAR currently has a PEG ratio of 1.63. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Automotive - Domestic stocks are, on average, holding a PEG ratio of 1.72 based on yesterday's closing prices.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 5 Stocks Set to Double. Click to get this free report
PACCAR Inc. (PCAR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Paccar (PCAR) Increases Despite Market Slip: Here's What You Need to Know

THOR Industries, Inc. THO posted earnings of $1.86 per share for the third quarter of fiscal 2026 (ended April 30), missing the Zacks Consensus Estimate of $1.88 by 1.1%. The bottom line declined 32.9% year over year.
THO’s quarterly revenues came in at $2.78 billion, beating the Zacks Consensus Estimate of $2.64 billion by 5.2% and decreasing 3.9% from the year-ago quarter. The results reflected a pressured RV retail backdrop, with industry retail tracking near 300,000 units in calendar 2026, weighing most heavily on value-oriented towables.
Thor Industries, Inc. Price, Consensus and EPS Surprise
THO Margins Compress as Profitability Softens
THO’s gross profit fell 19.9% year over year to $354.8 million, and gross margin narrowed 250 basis points to 12.8%. The downturn reflected lower consolidated volumes and cost pressures, particularly in North American Towables, alongside an unfavorable mix.
Net income attributable to THOR declined 28.1% to $97.2 million. The reported profitability benefited from favorable market value adjustments on certain investments and gains on the sale of select real estate tied to footprint optimization, while adjusted profitability excluded several nonrecurring items.
THOR Towable Segment Hit by Dealer Caution
North American Towable net sales declined 24.6% year over year to $881.8 million as independent dealers stayed cautious in a strained retail environment. Unit shipments fell 25% year over year to 27,045 units, while gross profit declined 48.5% to $89.7 million. Segment gross margin contracted 470 basis points to 10.2%, pressured by lower sales, higher material costs and product mix. Pretax income decreased 46% year over year to $52.7 million.
Backlog for the Towable segment stood at $386 million as of April 30, 2026, down 39.1% from the prior-year period. Dealer inventory of THOR Towable products was 67,151 units, down 17.3% year over year, consistent with dealers managing risk into an uncertain selling season.
THO Motorized and Europe Deliver Better Top-Line Trends
North American Motorized remained a relatively bright spot. Net sales increased 7.7% to $717.7 million, driven by higher unit shipments. Unit shipments rose 9.1% year over year to 6,008 units. Gross profit slipped 10.5% to $62.9 million, while gross margin eased to 8.8% from 10.5% in the prior-year period, as higher volumes were more than offset by increases in material, warranty and overhead costs. Pretax income declined 22.9% to $25.3 million. The segment’s backlog was $766.1 million, down from $883.7 million as of April 30, 2025.
In the Europe RVs segment, net sales rose 11.8% to $987.6 million, aided by higher unit shipments and pricing, including currency effects. Unit shipments grew 4.2% year over year to 14,065 units. Gross profit edged down 0.6% to $142 million, while pretax income rose 21.3% to $56.2 million. European backlog was $1.36 billion, up 1% year over year, and dealer inventory was 20,400 units, down 11.2% year over year.
THOR Liquidity Remains Solid Despite Lower Cash Flow
As of April 30, 2026, THOR’s cash and cash equivalents totaled $371.9 million. Through the first nine months of fiscal 2026, net cash provided by operating activities was $77 million, down from $319.2 million in the prior-year period.
THO Lowers Full-Year Earnings View as Headwinds Persist
THOR maintained its full-year fiscal 2026 consolidated net sales guidance of $9-$9.5 billion, but lowered its diluted earnings outlook to $3.30-$3.80 from the prior $3.75-$4.25 range, citing prolonged macroeconomic and consumer-confidence pressures.
On capital deployment, THOR repurchased $50.5 million of shares during the quarter and paid $27.1 million in dividends, underscoring management’s intent to stay disciplined while investing in operational initiatives such as its North American RV realignment aimed at sourcing coordination, standardization and data integration.
THO currently has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Releases From Auto Space
Mobileye Global Inc. MBLY reported first-quarter 2026 results on April 23. It posted earnings of 12 cents per share, beating the Zacks Consensus Estimate of 8 cents by 58.52%. The bottom line rose 50% year over year, driven by higher shipments of EyeQ system-on-chip. The company posted revenues of $558 million, which beat the Zacks Consensus Estimate of $520 million by 7.36% and increased 27.4% year over year.
Operating cash flow was $75 million, reflecting the company’s ability to convert its ADAS scale into cash generation.
Mobileye also approved a share buyback program of up to $250 million. By the end of the first quarter, MBLY had $1.21 billion in cash, after spending $591 million (net of cash received) on the Mentee Robotics acquisition.
Gentex Corporation GNTX reported first-quarter 2026 results on April 24. It posted adjusted earnings of 48 cents per share, which beat the Zacks Consensus Estimate of 44 cents by 8.28%. The figure increased 11.6% from 43 cents a year ago. Net sales came in at $675 million, topping the consensus mark of $647 million by 4.36%. Revenues rose 17.1% from $577 million in the year-ago quarter, aided by contributions from VOXX and a richer mix of advanced features.
Liquidity improved during the quarter. As of March 31, 2026, GNTX’s cash and cash equivalents were $164.8 million compared with $145.6 million as of Dec. 31, 2025. Short-term investments increased to $10.3 million from $5.4 million.
PACCAR Inc. PCAR reported first-quarter 2026 results on April 28. It reported earnings of $1.15 per share, beating the Zacks Consensus Estimate of $1.13 by 1.8%. The bottom line decreased 21.2% from $1.46 in the year-ago quarter. Consolidated revenues (including trucks and financial services) were $6.78 billion, down from $7.44 billion in the corresponding quarter of 2025. The decline reflected lower industry volumes.
On the balance sheet, cash and marketable securities were $8.60 billion as of March 31, 2026, compared with $9.25 billion as of Dec. 31, 2025, while stockholders’ equity increased to $19.76 billion from $19.26 billion over the same span.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PACCAR Inc. (PCAR) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

THOR Q3 Earnings Miss Expectations on Weakness in Towable Segment

It has been about a month since the last earnings report for Paccar (PCAR). Shares have lost about 5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Paccar due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
PCAR Q1 Earnings Surpass Estimates on Higher Parts Profit
PACCAR delivered first-quarter 2026 earnings of $1.15 per share, beating the Zacks Consensus Estimate of $1.13 by 1.8%. The bottom line decreased 21.2% from $1.46 in the year-ago quarter.
Consolidated revenues (including trucks and financial services) were $6.78 billion, down from $7.44 billion in the corresponding quarter of 2025. The decline reflected lower industry volumes.
Sales from Truck, Parts and Other amounted to $6.23 billion. Global new truck deliveries totaled 33,100 units versus 40,100 a year ago.
PCAR’s Revenue Mix Tilts Toward Trucks
By business line, Truck sales were $4.53 billion versus $5.23 billion a year ago. Parts revenues rose to $1.71 billion from $1.69 billion reported in the year-ago period. Financial Services revenues increased to $542.2 million from $528 million. PACCAR Sees Improving Demand in Key Markets
The company expects a “positive inflection” in the U.S. and Canada truck market as freight rates improve amid reduced trucking capacity. For 2026, the company expects U.S. and Canada Class 8 industry retail sales in the range of 230,000-270,000 trucks.
In Europe, PACCAR projected above 16-tonne registrations of 280,000-320,000 trucks in 2026, while the comparable South American market is expected to be 100,000-110,000 trucks. The company also pointed to product initiatives, including new DAF XD, XF, XG and XG+ Electric offerings and Kenworth’s newly unveiled C580 vocational truck, with production slated to begin in January 2027.
PCAR Parts and Financing Remain Key Profit Pillars
PACCAR Parts continued to be a major profit contributor, generating pretax income of $402.3 million in the quarter compared with $426.5 million a year ago. The segment’s performance improved due to investments in parts distribution centers, TRP all-makes parts and logistics capabilities supporting a broad dealer and service footprint.
PACCAR Truck's pre-tax income was $176.2 million, which decreased 51.7% year over year.
PACCAR Financial Services delivered pretax income of $115.5 million versus $121.1 million in the year-ago quarter. The business ended the period with a portfolio of 221,000 trucks and trailers and total assets of $22.3 billion, while PacLease’s fleet was about 37,000 vehicles. The company issued $400 million in medium-term notes during the first quarter.
PACCAR’s Costs and Other Items Shift Year Over Year
Within Truck, Parts and Other, the cost of sales and revenues were $5.42 billion, while research and development expense was $109.1 million and selling, general and administrative expense was $149.6 million. Truck, Parts and Other income before income taxes rose to $580.4 million from $438.2 million in the prior-year quarter.
A notable year-over-year swing came from “Interest and other (income) expense, net,” which was income of $21.3 million in the first quarter of 2026 compared with an expense of $325.8 million a year ago. The prior-year period included a $350.0 million charge related to civil litigation in Europe (EC-related claims). In Financial Services, provision for losses on receivables increased to $44.1 million from $18.3 million.
PCAR’s Cash Flow Stays Solid as Investment Continues
PACCAR generated $971.8 million of cash provided by operations in the quarter, up from $910.3 million a year ago. The company invested $135.5 million in capital projects and declared a dividend of 33 cents per share.
On the balance sheet, cash and marketable securities were $8.60 billion as of March 31, 2026, compared with $9.25 billion as of Dec. 31, 2025, while stockholders’ equity increased to $19.76 billion from $19.26 billion over the same span. Looking ahead, the company expects 2026 capital expenditures of $725-$775 million and research and development expenses of $450-$500 million as it steps up investment in next-generation powertrains, connected vehicle services, expanded manufacturing capabilities and its autonomous vehicle platform.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -8.97% due to these changes.
VGM Scores
At this time, Paccar has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock has a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Interestingly, Paccar has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PACCAR Inc. (PCAR) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Is Paccar (PCAR) Down 5% Since Last Earnings Report?

NIO Inc. NIO delivered a narrower-than-expected loss in the first quarter of 2026, as strong volume growth and a firmer mix supported profitability. The company reported a loss of 3 cents per American Depositary Share (ADS), narrower than the Zacks Consensus Estimate of a loss of 24 cents, delivering a positive earnings surprise of 87.5%.
Total revenues rose 123% year over year to $3.70 billion and beat the Zacks Consensus Estimate of $3.55 billion by 4.28%. Vehicle deliveries climbed 98.3% from the year-ago period to 83,465 units, reflecting improving demand across the company’s multi-brand portfolio.
NIO Inc. Price, Consensus and EPS Surprise
NIO Scales Deliveries Across Three Brands
Deliveries in the quarter were led by the NIO brand with 58,543 units, while ONVO contributed 13,339 vehicles and FIREFLY added 11,583. The company is broadening its addressable market, with the newer brands helping it reach additional price points and customer segments.
The delivery mix also mattered for the income statement. A more favorable product mix was a key factor behind margin expansion versus last year, suggesting higher-priced trims and a healthier contribution from models with better economics.
NIO’s Vehicle Sales Growth Outpaces Revenue Mix
Vehicle sales increased 141.1% year over year to $3.30 billion, handily outpacing the growth rate in total revenues. Beyond higher volumes, the company attributed the year-over-year lift to a higher average selling price, again pointing to mix improvement.
Other sales, which include areas such as power solutions, parts and after-sales services, used cars and technical research and development services, rose 38% from a year ago to $398.5 million. While this stream grew at a slower pace than vehicle sales, it continued to provide diversification and incremental scale benefits.
NIO Posts Strong Margin Expansion Year Over Year
Profitability improved sharply in the quarter. Vehicle margin expanded to 18.8% from 10.2% a year ago. Gross profit was $704.4 million, up 456% year over year. The gross margin improved to 19% from 7.6% a year ago. Along with the product mix tailwind, an improved gross loss rate from its power solutions business and higher sales from parts, accessories and after-sales services, also contributed to growth.
Those gains helped NIO convert revenue growth into a meaningful improvement in gross profit. Even with a sequential decline in deliveries from the fourth quarter, margins held up, underscoring the benefit of cost discipline and mix.
NIO Keeps Tight Rein on Operating Costs
NIO’s expense profile also moved in the right direction. Research and development expenses declined 37.7% year over year to $273.3 million, reflecting ongoing efforts to streamline spending while advancing key programs. Selling, general and administrative expenses fell 16.4% to $507 million, driven largely by lower personnel and related costs in marketing and other supporting functions.
The combination of lower operating expenses and materially higher gross profit narrowed operating losses substantially from the year-ago quarter. On a non-GAAP basis, the company returned to adjusted profit from operations and adjusted net profit, reflecting the leverage that can emerge when volumes and margins improve together.
NIO’s Liquidity Remains a Key Watch Point
As of March 31, 2026, NIO had cash and cash equivalents, restricted cash, short-term investments and long-term time deposits of $7 billion. That liquidity provides flexibility as the company continues to invest in product development, charging and battery-swap infrastructure, and the rollout of additional models and brand initiatives.
NIO Sets Up Q2 With Higher Delivery and Revenue Targets
For the second quarter of 2026, the company expects vehicle deliveries between 110,000 and 115,000 units, implying year-over-year growth of about 52.7% to 59.6%. NIO expects total revenues to be in the range of $4,752 million to $4,992 million.
The outlook suggests that the company is aiming to build on first-quarter momentum, with a heavier delivery cadence and continued demand support across brands. Execution on volumes and mix, alongside disciplined spending, will remain central to whether NIO can sustain its improving earnings profile.
NIO currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Releases From Auto Space
Mobileye Global Inc. MBLY reported first-quarter 2026 results on April 23. It posted earnings of 12 cents per share, beating the Zacks Consensus Estimate of 8 cents by 58.52%. The bottom line rose 50% year over year, driven by higher shipments of EyeQ system-on-chip. The company posted revenues of $558 million, which beat the Zacks Consensus Estimate of $520 million by 7.36% and increased 27.4% year over year.
Operating cash flow was $75 million, reflecting the company’s ability to convert its ADAS scale into cash generation.
Mobileye also approved a share buyback program of up to $250 million. By the end of the first quarter, MBLY had $1.21 billion in cash, after spending $591 million (net of cash received) on the Mentee Robotics acquisition.
Gentex Corporation GNTX reported first-quarter 2026 results on April 24. It posted adjusted earnings of 48 cents per share, which beat the Zacks Consensus Estimate of 44 cents by 8.28%. The figure increased 11.6% from 43 cents a year ago. Net sales came in at $675 million, topping the consensus mark of $647 million by 4.36%. Revenues rose 17.1% from $577 million in the year-ago quarter, aided by contributions from VOXX and a richer mix of advanced features.
Liquidity improved during the quarter. As of March 31, 2026, GNTX’s cash and cash equivalents were $164.8 million compared with $145.6 million as of Dec. 31, 2025. Short-term investments increased to $10.3 million from $5.4 million.
PACCAR Inc. PCAR reported first-quarter 2026 results on April 28. It reported earnings of $1.15 per share, beating the Zacks Consensus Estimate of $1.13 by 1.8%. The bottom line decreased 21.2% from $1.46 in the year-ago quarter. Consolidated revenues (including trucks and financial services) were $6.78 billion, down from $7.44 billion in the corresponding quarter of 2025. The decline reflected lower industry volumes.
On the balance sheet, cash and marketable securities were $8.60 billion as of March 31, 2026, compared with $9.25 billion as of Dec. 31, 2025, while stockholders’ equity increased to $19.76 billion from $19.26 billion over the same span.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PACCAR Inc. (PCAR) : Free Stock Analysis Report
NIO Inc. (NIO) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

NIO Q1 Earnings Surpass Expectations on Surging Deliveries

Honda HMC incurred a loss of $4.24 per share for the fourth quarter of fiscal 2026, beating the Zacks Consensus Estimate by 90.2%. The bottom line, however, fell from the year-ago quarter’s earnings of 18 cents per share. Quarterly revenues totaled $37.1 billion, which rose from the year-ago period’s figure of $35.2 billion.
Honda Motor Co., Ltd. Price, Consensus and EPS Surprise
Segmental Highlights
For the three-month period, which ended on March 31, 2026, revenues from the Automobile segment increased 4.6% year over year to ¥3.73 trillion ($23.8 billion). The segment registered an operating loss of ¥1.25 trillion ($7.96 billion) compared with an operating loss of ¥158.7 billion in the corresponding quarter of fiscal 2025.
Revenues from the Motorcycle segment came in at around ¥1.09 trillion ($6.94 billion), which increased 17.9% year over year. The unit’s operating profit came in at ¥185.3 billion ($1.18 billion), up 14.6% year over year.
Revenues from the Financial Services segment totaled ¥975 billion ($6.21 billion), up 14.8% year over year. The unit’s operating profit totaled ¥57.5 billion ($366.4 million), down 18.6% year over year.
Revenues from Power Product and Other Businesses came in at ¥129.7 billion ($826.4 million), up 14.5% year over year. The segment reported operating income of ¥4.1 billion (26.1 million) against the operating loss of ¥68 billion incurred in the same period last year.
Financials & FY27 View
Consolidated cash and cash equivalents were ¥4.53 trillion ($28.5 billion) as of March 31, 2026. Long-term debt was around ¥301.4 billion ($1.9 billion) as of March 31, 2026.
Honda projects fiscal 2027 consolidated sales volumes from the Motorcycle, Automobile and Power Products segments to be 15.19 million units, 2.71 million units and 3.59 million units, respectively. The forecast implies growth of 3.5% year over year in the Motorcycles unit, while it implies a year-over-year rise of 4% and 1.7% for the Automobile and Power Product unit sales, respectively.
For fiscal 2027, Honda forecasts revenues of ¥23.15 trillion, implying a rise of 6.2% year over year. Operating profit is envisioned at ¥500 billion, indicating a contraction of 54.7% year over year. Pretax profit is forecasted to be ¥500 billion, suggesting a drop of 55.9% year over year. The company will pay an interim and year-end dividend of ¥35 per share each in fiscal 2027.
HMC currently has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Releases From Auto Space
Mobileye Global Inc. MBLY reported first-quarter 2026 results on April 23. It posted earnings of 12 cents per share, beating the Zacks Consensus Estimate of 8 cents by 58.52%. The bottom line rose 50% year over year, driven by higher shipments of EyeQ system-on-chip. The company posted revenues of $558 million, which beat the Zacks Consensus Estimate of $520 million by 7.36% and increased 27.4% year over year.
Operating cash flow was $75 million, reflecting the company’s ability to convert its ADAS scale into cash generation.
Mobileye also approved a share buyback program of up to $250 million. By the end of the first quarter, MBLY had $1.21 billion in cash, after spending $591 million (net of cash received) on the Mentee Robotics acquisition.
Gentex Corporation GNTX reported first-quarter 2026 results on April 24. It posted adjusted earnings of 48 cents per share, which beat the Zacks Consensus Estimate of 44 cents by 8.28%. The figure increased 11.6% from 43 cents a year ago. Net sales came in at $675 million, topping the consensus mark of $647 million by 4.36%. Revenues rose 17.1% from $577 million in the year-ago quarter, aided by contributions from VOXX and a richer mix of advanced features.
Liquidity improved during the quarter. As of March 31, 2026, GNTX’s cash and cash equivalents were $164.8 million compared with $145.6 million as of Dec. 31, 2025. Short-term investments increased to $10.3 million from $5.4 million.
PACCAR Inc. PCAR reported first-quarter 2026 results on April 28. It reported earnings of $1.15 per share, beating the Zacks Consensus Estimate of $1.13 by 1.8%. The bottom line decreased 21.2% from $1.46 in the year-ago quarter. Consolidated revenues (including trucks and financial services) were $6.78 billion, down from $7.44 billion in the corresponding quarter of 2025. The decline reflected lower industry volumes.
On the balance sheet, cash and marketable securities were $8.60 billion as of March 31, 2026, compared with $9.25 billion as of Dec. 31, 2025, while stockholders’ equity increased to $19.76 billion from $19.26 billion over the same span.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PACCAR Inc. (PCAR) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Honda's Q4 Earnings Surpass Expectations, Revenues Rise Y/Y

Standard Motor Products, Inc. SMP reported first-quarter 2026 adjusted earnings of 82 cents per share, up 1.2% from the year-ago quarter. The figure beat the Zacks Consensus Estimate of 73 cents by 12.3%.
Net sales increased 9.1% year over year to $451.2 million and topped the Zacks Consensus Estimate of $422 million by about 6.8%. Adjusted EBITDA rose to $44.5 million from $42.8 million a year ago, supported by steady aftermarket demand and solid execution across segments.
Standard Motor Products, Inc. Price, Consensus and EPS Surprise
SMP Delivered Growth Across Core Aftermarket Lines
Vehicle Control sales grew 11.2% year over year to $213.8 million, driven by customer pipeline orders tied to assortment expansion, alongside generally favorable demand trends.
Temperature Control sales increased 0.7% to $89.5 million, lapping a record prior-year quarter.
Standard Motor Saw Solid Contributions From Europe and OEM-Facing Markets
Nissens Automotive sales increased 12.4% to $74.4 million. The rise was attributed to the growth in currency translation, while local-currency sales were also higher against a tougher comparison after unusually robust customer order patterns in the prior year.
Engineered Solutions sales rose 12.6% year over year to $74.3 million, reflecting improving demand conditions and stronger activity at certain customers, particularly within commercial vehicle and powersports end markets.
SMP Expanded Margins as Operating Income Improved
Gross profit rose to $139.2 million from $124.7 million a year ago, with gross margin improving to 30.8% from 30.2%. Operating income climbed to $34.1 million from $24.5 million, and operating margin expanded to 7.6% from 5.9%.
Selling, general and administrative expenses were $104.8 million compared with $99.8 million in the prior-year quarter. The company expects nominal tariff pass-through pricing in its North American aftermarket operations to weigh on rate-based margins when tariffs are passed through at cost.
Standard Motor’s Mixed Segment Profit Picture
On an operating profit basis, Vehicle Control delivered $20.2 million, while Temperature Control's operating profit increased to $10.6 million from $7.8 million.
Nissens Automotive generated an operating profit of $7.9 million. Engineered Solutions produced $1.7 million, down from $3.2 million a year ago, as inflationary headwinds and manufacturing variances pressured profitability despite the sales rebound.
SMP Cash Flow Reflected Seasonal Working Capital Dynamics
Cash used in operating activities was $41.9 million in the quarter, down from $60.2 million used a year ago. This was due to a stronger preparedness on inventory entering the year, as sales ramp seasonally during the first quarter.
SMP ended the quarter with $59.2 million in cash compared with $72 million at year-end 2025. Long-term debt was $609.3 million at March 31, 2026, compared with $566.7 million at Dec. 31, 2025, reflecting the typical seasonal working capital build early in the year.
Standard Motor Reaffirmed 2026 View and Kept Dividend Intact
For 2026, SMP reaffirmed expectations for low to mid-single-digit sales growth and an adjusted EBITDA margin range of 11-12%. The company also reiterated that the outlook excludes the impact of ongoing tariff changes.
The company declared a quarterly dividend of 33 cents per share, payable on June 1, 2026, to stockholders of record on May 15.
SMP currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Releases From Auto Space
Mobileye Global Inc. MBLY reported first-quarter 2026 results on April 23. It posted earnings of 12 cents per share, beating the Zacks Consensus Estimate of 8 cents by 58.52%. The bottom line rose 50% year over year, driven by higher shipments of EyeQ system-on-chip. The company posted revenues of $558 million, which beat the Zacks Consensus Estimate of $520 million by 7.36% and increased 27.4% year over year.
Operating cash flow was $75 million, reflecting the company’s ability to convert its ADAS scale into cash generation.
Mobileye also approved a share buyback program of up to $250 million. By the end of the first quarter, MBLY had $1.21 billion in cash, after spending $591 million (net of cash received) on the Mentee Robotics acquisition.
Gentex Corporation GNTX reported first-quarter 2026 results on April 24. It posted adjusted earnings of 48 cents per share, which beat the Zacks Consensus Estimate of 44 cents by 8.28%. The figure increased 11.6% from 43 cents per share a year ago. Net sales came in at $675 million, topping the consensus mark of $647 million by 4.36%. Revenues rose 17.1% from $577 million in the year-ago quarter, aided by contributions from VOXX and a richer mix of advanced features.
Liquidity improved during the quarter. As of March 31, 2026, GNTX’s cash and cash equivalents were $164.8 million compared with $145.6 million as of Dec. 31, 2025. Short-term investments increased to $10.3 million from $5.4 million.
PACCAR Inc. PCAR reported first-quarter 2026 results on April 28. It reported earnings of $1.15 per share, beating the Zacks Consensus Estimate of $1.13 by 1.8%. The bottom line decreased 21.2% from $1.46 in the year-ago quarter. Consolidated revenues (including trucks and financial services) were $6.78 billion, down from $7.44 billion in the corresponding quarter of 2025. The decline reflected lower industry volumes.
On the balance sheet, cash and marketable securities were $8.60 billion as of March 31, 2026, compared with $9.25 billion as of Dec. 31, 2025, while stockholders’ equity increased to $19.76 billion from $19.26 billion over the same span.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PACCAR Inc. (PCAR) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

SMP Q1 Earnings Beat Estimates on Broad-Based Sales Growth

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores?
Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value Score
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth Score
Growth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum Score
Momentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM Score
If you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank
A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.93% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Paccar (PCAR)
Headquartered in Bellevue, WA, PACCAR Inc. is a leading manufacturer of heavy-duty trucks in the world and has substantial manufacturing exposure to light/medium trucks. It also designs and manufactures diesel engines and other powertrain components for use in its products and sale to third-party manufacturers of trucks and buses. Besides supplying aftermarket parts, PACCAR also offers finance and leasing services.
PCAR is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 19.86; value investors should take notice.
Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.06 to $5.87 per share. PCAR also boasts an average earnings surprise of +2.2%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, PCAR should be on investors' short list.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PACCAR Inc. (PCAR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Here's Why Paccar (PCAR) is a Strong Value Stock

Paccar (PCAR) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this truck maker have returned -6.2% over the past month versus the Zacks S&P 500 composite's +11.4% change. The Zacks Automotive - Domestic industry, to which Paccar belongs, has gained 11.5% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Paccar is expected to post earnings of $1.44 per share, indicating a change of +5.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -8% over the last 30 days.
The consensus earnings estimate of $5.87 for the current fiscal year indicates a year-over-year change of +17.2%. This estimate has changed +1.3% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $6.81 indicates a change of +16.1% from what Paccar is expected to report a year ago. Over the past month, the estimate has changed -1.4%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Paccar is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Paccar, the consensus sales estimate of $7.05 billion for the current quarter points to a year-over-year change of +1.3%. The $27.63 billion and $29.33 billion estimates for the current and next fiscal years indicate changes of +5.3% and +6.1%, respectively.
Last Reported Results and Surprise History
Paccar reported revenues of $6.23 billion in the last reported quarter, representing a year-over-year change of -9.8%. EPS of $1.15 for the same period compares with $1.46 a year ago.
Compared to the Zacks Consensus Estimate of $6.35 billion, the reported revenues represent a surprise of -1.79%. The EPS surprise was +1.77%.
Over the last four quarters, Paccar surpassed consensus EPS estimates two times. The company topped consensus revenue estimates three times over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Paccar is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Paccar. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PACCAR Inc. (PCAR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is Trending Stock PACCAR Inc. (PCAR) a Buy Now?

Key Points
AI spending is expected to increase in 2027.
The AI-driven market rally looks like it could have staying power.
The S&P 500 index climbed about 10.5% in April, making it the best month for the market since 2020.The index hit a new all-time high on the last trading day of the month, despite ongoing uncertainty and economic drag from the conflicts in the Middle East. So, what sent the market soaring in April?
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
More specifically, it's the massive AI build-out underway in the U.S., including some $670 billion in AI capital expenditures by hyperscalers this year. (Some analysts predict it could be much higher -- UBS expects the final AI spending figure for 2026 to be closer to $770 billion.)
Goldman Sachs estimates that AI-related investment will drive a full 40% of the entire S&P 500's earnings-per-share (EPS) growth this year. Earnings growth -- or, more accurately, the anticipation of it -- is what drives stocks higher.
AI spending is showing up in the financial results of many industries
The AI investment bonanza is boosting revenues and profits in companies far from Silicon Valley.
Of course, the hyperscalers -- cloud computing companies like Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), and Meta Platforms (NASDAQ: META) that offer data storage and computing services -- are the major initiators of the AI spending. Those companies are issuing billions of dollars in bonds in capital markets to fund that spending extravaganza.
Then there are the semiconductor and semiconductor equipment manufacturers. Due to the AI construction boom, there's currently a shortage of memory chips, which is expected to continue through 2027. As a result, the State Street SPDR S&P Semiconductor ETF (NYSEMKT: XSD) is up nearly 60% over the past month. Nvidia (NASDAQ: NVDA), which has the largest market cap and therefore the greatest effect on the S&P 500 index, rose 20% in April. Micron Technology (NASDAQ: MU), which makes memory chips, soared 61% in April.
Don't forget construction equipment companies like Deere (NYSE: DE) and Caterpillar (NYSE: CAT), and heavy-duty truck manufacturers like Paccar (NASDAQ: PCAR), which are needed to build the massive data centers. They, too, are seeing a windfall from the AI boom. Caterpillar's gas turbine division is booming due to the insatiable power needs of AI data centers. Sales in the company's turbine division rose 23% during the first quarter, to $1.75 billion.
GE Vernova (NYSE: GEV), which makes power technologies, blew past Wall Street expectations for first-quarter revenue and earnings, and its shares climbed 33% last month.
The rapidly rising demand for power is affecting electricity utilities, too. Dominion Energy (NYSE: D) just turned on the first commercial turbine project in its Coastal Virginia Offshore Wind project. Dominion plans to spend nearly $55 billion to build facilities to support the power needs of data centers (Virginia has more than any other state).
The enormous AI tailwind for the market should continue for the foreseeable future. Goldman Sachs expects AI infrastructure spending to reach nearly $800 billion in 2027.
An AI-driven stock market is a trend with staying power and is increasingly looking like a potential supercycle.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 971%* — a market-crushing outperformance compared to 202% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
*Stock Advisor returns as of May 2, 2026.
Matthew Benjamin has positions in Alphabet and Deere & Company. The Motley Fool has positions in and recommends Alphabet, Amazon, Caterpillar, Deere & Company, GE Vernova, Goldman Sachs Group, Meta Platforms, Micron Technology, Nvidia, and Paccar. The Motley Fool recommends Dominion Energy. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

April Was the Best Month for the Market Since 2020. Here's What's Driving It.

Rivian Automotive RIVN posted a reported loss of 55 cents per share in the first quarter of 2026, narrower than the Zacks Consensus Estimate of a loss of 60 cents, delivering a positive earnings surprise of 7.7%.
Quarterly revenues came in at $1.38 billion, topping the consensus mark of $1.37 billion by 1% and rising 11.4% year over year. Higher delivery volumes and strong software and services execution were key supports for the quarter.
Rivian Automotive, Inc. Price, Consensus and EPS Surprise
RIVN Delivers Higher Volumes as R2 Ramps
RIVN delivered 10,365 vehicles in the quarter, representing a 20% increase from the year-ago period. Cumulative deliveries reached 175,565, underscoring the company’s expanding on-road fleet and broader customer base.
Production totaled 10,236 units, down 30% year over year. Operationally, Rivian achieved a major milestone with the start of saleable R2 production at its Normal, IL, facility and has already begun delivering R2 vehicles to employees, with external customer deliveries expected in the coming weeks.
Rivian’s Mix Shift Pressures Automotive Profit
Rivian’s automotive segment generated $908 million of revenues in the quarter, down from $922 million a year ago. The year-over-year decline was largely attributable to a $100 million decrease in sales of automotive regulatory credits, along with lower automotive revenue per unit delivered, tied to a higher mix of commercial vans.
Profitability in the segment also moved in the wrong direction. Automotive gross profit was a loss of $62 million versus a $92 million profit in the first quarter of 2025, reflecting the reduced regulatory credit contribution and lower production volumes. Higher depreciation and stock-based compensation expenses within the segment were also contributing factors.
RIVN Leans on Software and Services Momentum
Software and services continued to be a bright spot. Segment revenues rose to $473 million from $318 million in the year-ago quarter, driven by higher vehicle electrical architecture and software development services from RV Tech, alongside growth in vehicle repair and maintenance services and remarketing activities.
The margin profile remained attractive. Software and services gross profit increased to $181 million from $114 million a year ago, supported by RV Tech-related services and higher contribution from service and remarketing. Segment gross margin was 38% for the quarter.
Rivian Spending Rises as It Builds for Scale
Gross profit amounted to $119 million compared with $206 million in the prior-year quarter. The gross margin for the reported quarter was 9% compared with 17% in the year-ago quarter.
Rivian’s operating expenses increased in the quarter. Research and development expense rose to $458 million from $381 million a year ago, while selling, general and administrative expense increased to $542 million from $480 million. Total operating expenses were $1 billion compared with $861 million in the prior-year quarter.
Higher spending, combined with the automotive gross loss, weighed on operating results. Loss from operations widened to $881 million from $655 million a year ago. The company expects to see meaningful fixed cost efficiencies over the coming quarters as R2 production volume rises, which is an important swing factor for cost absorption.
RIVN Liquidity, Cash Burn and 2026 Targets
Liquidity remained a key investor focus. As of March 31, 2026, Rivian’s cash and cash equivalents totaled $2.85 billion compared with $3.58 billion as of Dec. 31, 2025, and reported total available liquidity of $5.39 billion, including availability under its ABL facility. Long-term debt was $4,442 million as of March 31, 2025, compared with $4,440 million as of Dec. 31, 2025.
Cash flow was pressured by operating outflows and investment needs. Net cash used in operating activities was $703 million, and capital expenditures were $372 million, resulting in a negative free cash flow of $1.08 billion. For 2026, Rivian expects vehicle deliveries of 62,000-67,000 units, adjusted EBITDA in a range of negative $2.10 billion to negative $1.80 billion, and capital expenditures of $1.95-$2.05 billion.
RIVN currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Releases From Auto Space
Mobileye Global Inc. MBLY reported first-quarter 2026 results on April 23. It posted earnings of 12 cents per share, beating the Zacks Consensus Estimate of 8 cents by 58.52%. The bottom line rose 50% year over year, driven by higher shipments of EyeQ system-on-chip. The company posted revenues of $558 million, which beat the Zacks Consensus Estimate of $520 million by 7.36% and increased 27.4% year over year.
Operating cash flow was $75 million, reflecting the company’s ability to convert its ADAS scale into cash generation.
Mobileye also approved a share buyback program of up to $250 million. By the end of the first quarter, MBLY had $1.21 billion in cash, after spending $591 million (net of cash received) on the Mentee Robotics acquisition.
Gentex Corporation GNTX reported first-quarter 2026 results on April 24. It posted adjusted earnings of 48 cents per share, which beat the Zacks Consensus Estimate of 44 cents by 8.28%. The figure increased 11.6% from 43 cents a year ago. Net sales came in at $675 million, topping the consensus mark of $647 million by 4.36%. Revenues rose 17.1% from $577 million in the year-ago quarter, aided by contributions from VOXX and a richer mix of advanced features.
Liquidity improved during the quarter. As of March 31, 2026, GNTX’s cash and cash equivalents were $164.8 million compared with $145.6 million as of Dec. 31, 2025. Short-term investments increased to $10.3 million from $5.4 million.
PACCAR Inc. PCAR reported first-quarter 2026 results on April 28. It reported earnings of $1.15 per share, beating the Zacks Consensus Estimate of $1.13 by 1.8%. The bottom line decreased 21.2% from $1.46 in the year-ago quarter. Consolidated revenues (including trucks and financial services) were $6.78 billion, down from $7.44 billion in the corresponding quarter of 2025. The decline reflected lower industry volumes.
On the balance sheet, cash and marketable securities were $8.60 billion as of March 31, 2026, compared with $9.25 billion as of Dec. 31, 2025, while stockholders’ equity increased to $19.76 billion from $19.26 billion over the same span.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PACCAR Inc. (PCAR) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.