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 appears to be a financially solid company, but the current valuation already reflects a significant portion of the business quality. Liquidity is very strong: a quick ratio of 2.90 and a current ratio of 3.12 are noticeably above the industry medians, while a cash position of $8.83 billion supports balance sheet flexibility. The debt burden is moderate: debt/equity of 0.49 is around the median, and debt has declined over recent periods, which reduces risk for shareholders. Profitability is generally good: an operating margin of 13.33% and a net profit margin of 9.00% are above the industry, while operating income and net income remain stable year over year. However, there are also weaknesses: a gross margin of 19.99% is below the industry median, and ROE, ROA, and return on tangible equity are below the sector average, indicating less-than-ideal efficiency in the use of capital and assets. The valuation multiples look mixed: P/E is below the median, and P/FCF is also lower, supporting the idea of a reasonable valuation, but P/S and P/B are above the industry, so the market is already paying a premium for scale and stability. The trend in multiples is generally favorable, because P/E and P/FCF have declined from higher levels, but that does not change the fact that the valuation relative to revenue and book value remains above average. Revenue and absolute profit are large and generally stable, while equity is growing, confirming the quality of the balance sheet. At the same time, dividend yield has fallen to zero on a TTM basis, so the dividend factor currently does not support the case for revaluation. Overall, the fundamentals point to a strong but not cheap company with good liquidity and moderate debt, where upside is limited by the already elevated starting valuation. For an investor, this is more of a story of a high-quality industrial business with defensive characteristics than a clear candidate for an aggressive upward target revision.

PACCAR Inc.

Слабый индекс, значительно упал. Уверенность быков остается на низком уровне.

Weak index, significantly down. Bullish confidence remains low.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Сильный индекс, без изменений. Отток средств из лонгов на высоком уровне.

Strong index, flat. Outflow of funds from longs at a high level.

Strong balance sheet and margins support PACCAR’s valuation, but weaker-than-industry ROE/ROA and a premium on P/S and P/B limit upside potential.

In the latest close session, Paccar (PCAR) was down 1.65% at $109.96. This change lagged the S&P 500's 0.25% loss on the day. Elsewhere, the Dow lost 0.86%, while the tech-heavy Nasdaq added 0.24%.
Coming into today, shares of the truck maker had lost 8.7% in the past month. In that same time, the Auto-Tires-Trucks sector lost 2.07%, while the S&P 500 lost 0.42%.
The investment community will be closely monitoring the performance of Paccar in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.61, marking a 43.75% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $7.54 billion, showing a 23.48% escalation compared to the year-ago quarter.
PCAR's full-year Zacks Consensus Estimates are calling for earnings of $5.91 per share and revenue of $28.61 billion. These results would represent year-over-year changes of +17.96% and +9.05%, respectively.
It is also important to note the recent changes to analyst estimates for Paccar. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.34% higher. Currently, Paccar is carrying a Zacks Rank of #2 (Buy).
From a valuation perspective, Paccar is currently exchanging hands at a Forward P/E ratio of 18.93. For comparison, its industry has an average Forward P/E of 15.79, which means Paccar is trading at a premium to the group.
We can additionally observe that PCAR currently boasts a PEG ratio of 1.28. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Automotive - Domestic stocks are, on average, holding a PEG ratio of 0.96 based on yesterday's closing prices.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 45, which puts it in the top 19% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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PACCAR Inc. (PCAR) : Free Stock Analysis Report

Paccar (PCAR) Registers a Bigger Fall Than the Market: Important Facts to Note

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?
The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value Score
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth Score
Growth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience 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.
#1 (Strong Buy) stocks have produced an unmatched +23.8% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and 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.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
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 #2 (Buy) 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 19.42; value investors should take notice.
Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.19 to $5.91 per share. PCAR boasts an average earnings surprise of +2.3%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, PCAR should be on investors' short list.
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PACCAR Inc. (PCAR) : Free Stock Analysis Report
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Here's Why Paccar (PCAR) is a Strong Value Stock

PACCAR's Board of Directors declared a regular quarterly cash dividend of thirty-five cents per share, payable on December 2, 2026, to stockholders of record at the close of business on November 11, 2026.
The board of directors of Abbott declared a quarterly common dividend of 63 cents per share. This marks the 411th consecutive quarterly dividend to be paid by Abbott since 1924. The cash dividend is payable Nov. 16, 2026, to shareholders of record at the close of business on Oct. 15, 2026. Abbott has increased its dividend payout for 54 consecutive years and is a member of the S&P 500 Dividend Aristocrats Index, which tracks companies that have increased dividends annually for at least 25 consecutive years.
Texas Instruments said it will raise its quarterly cash dividend 7%, from $1.42 per share to $1.52, or $6.08 annualized. The higher dividend will be payable November 10, 2026, to stockholders of record on October 30, 2026, contingent upon formal declaration by the board of directors at its regular meeting in October. The increase is consistent with TI's long-term objective for dividends by providing a sustainable and growing dividend and reflects the company's continued commitment to return all free cash flow to its owners over time. Today's announcement marks 23 consecutive years of dividend increases.
Kroger's Board of Directors declared a quarterly dividend of 39 cents per share to be paid on December 1, 2026, to shareholders of record as of the close of business on November 16, 2026. The company's quarterly dividend has grown at a 13% compounded annual growth rate since it was reinstated in 2006. The company continues to expect, subject to board approval, an increasing dividend over time. Kroger's capital allocation strategy is to use its free cash flow to invest in the business to drive long-term sustainable net earnings growth while also maintaining its current investment grade debt rating and returning capital to shareholders. The company actively balances the use of its free cash flow to achieve these goals.
McDonald's Board of Directors declared a quarterly cash dividend of $1.93 per share of common stock, a 4% increase over the Company's previous quarterly dividend. The dividend is payable on December 15, 2026 to shareholders of record at the close of business on December 1, 2026. The new quarterly dividend of $1.93 per share is equivalent to $7.72 annually. With this increase, McDonald's marks a golden milestone with its 50th consecutive year of dividend increases, reflecting the durability of its business model, the resiliency of its cash flow, and a commitment to sustainable dividend growth. McDonald's is now proudly crowned as one of the "Dividend Kings," an elite group of fewer than 60 U.S. public companies that have raised their annual dividend for at least 50 consecutive years.
The Board of Directors of Colgate-Palmolive declared a quarterly cash dividend of $0.53 per common share, payable on November 13, 2026, to shareholders of record on October 20, 2026. The Company has paid uninterrupted dividends on its common stock since 1895.

Daily Dividend Report: PCAR,ABT,TXN,MCD,CL

Investors interested in Auto-Tires-Trucks stocks should always be looking to find the best-performing companies in the group. Paccar (PCAR) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Auto-Tires-Trucks sector should help us answer this question.
Paccar is one of 104 individual stocks in the Auto-Tires-Trucks sector. Collectively, these companies sit at #12 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Paccar is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for PCAR's full-year earnings has moved 5.7% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, PCAR has returned 8% so far this year. In comparison, Auto-Tires-Trucks companies have returned an average of -14.2%. This shows that Paccar is outperforming its peers so far this year.
One other Auto-Tires-Trucks stock that has outperformed the sector so far this year is Douglas Dynamics (PLOW). The stock is up 20.6% year-to-date.
For Douglas Dynamics, the consensus EPS estimate for the current year has increased 6.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Paccar belongs to the Automotive - Domestic industry, which includes 17 individual stocks and currently sits at #51 in the Zacks Industry Rank. Stocks in this group have lost about 15.5% so far this year, so PCAR is performing better this group in terms of year-to-date returns.
On the other hand, Douglas Dynamics belongs to the Automotive - Replacement Parts industry. This 8-stock industry is currently ranked #223. The industry has moved -13.7% year to date.
Going forward, investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to Paccar and Douglas Dynamics as they could maintain their solid performance.
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PACCAR Inc. (PCAR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).

Are Auto-Tires-Trucks Stocks Lagging PACCAR (PCAR) This Year?

Paccar (PCAR) has been on a downward spiral lately with significant selling pressure. After declining 7.3% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Here's Why PCAR Could Experience a Turnaround
The heavy selling of PCAR shares appears to be in the process of exhausting itself, as indicated by its RSI reading of 29.23. So, the trend for the stock could reverse soon for reaching the old equilibrium of supply and demand.
This technical indicator is not the only factor that calls for a potential rebound for the stock. There is a fundamental indicator as well. A strong agreement among sell-side analysts covering PCAR in raising earnings estimates for the current year has led to an increase in the consensus EPS estimate by 1% over the last 30 days. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, PCAR currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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.
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This article originally published on Zacks Investment Research (zacks.com).

After Plunging 7.3% in 4 Weeks, Here's Why the Trend Might Reverse for Paccar (PCAR)

Fintel reports that on September 10, 2026, RBC Capital upgraded their outlook for PACCAR (NASDAQGS:PCAR) from Sector Perform to Outperform.
Prior to this rating action, PACCAR's stock closed at $121.88 on September 9, 2026. This latest close of $121.88 represents a price change of -0.20% over one week, compared to a baseline close of $122.13 on September 2, 2026. Over a one-month period, the stock experienced a price change of -8.44% from a baseline close of $133.11 on August 7, 2026. PACCAR Inc, based in the United States, is a prominent player in the global heavy-duty truck manufacturing industry. The company designs, manufactures, and supports light, medium, and heavy-duty trucks under the Kenworth, Peterbilt, and DAF nameplates. It also provides aftermarket parts, finance, and information technology services. PACCAR's key projects include innovations in electric, hybrid, and hydrogen fuel cell vehicle technologies.
As of August 28, 2026, the current consensus target mean for PACCAR was $141.18, with a median target of $141.78. This mean target represents an implied change of +15.83% from the stock's valuation. Previously, on August 4, 2026, the prior consensus target mean was $139.69, reflecting a consensus target revision of +1.06%. In terms of aggregate analyst recommendations, as of the current recommendation period on September 1, 2026, there were 26 total recommendations. These consisted of 5 strong buy, 6 buy, 14 hold, and 1 sell recommendations. This breakdown represents 42.3% positive, 53.8% hold, and 3.8% negative recommendations.
PACCAR last reported earnings on July 28, 2026. The company reported an actual earnings per share (EPS) of 1.43, which exceeded the EPS estimate of 1.3812, representing an EPS surprise of +3.53%. Actual revenue for the quarter was $7,546,700,000,000,000.00, compared to the revenue estimate of $7,409,387,232,000,000.00. Other recent analyst actions include Morgan Stanley maintaining an Equal-Weight rating on September 4, 2026, with a prior rating of Equal-Weight. Additionally, Evercore ISI Group maintained an Outperform rating on August 11, 2026, with a prior rating of Outperform.
Recent analyst actions
Recent analyst upgrades, downgrades, initiations, and maintained ratings
Date
Analyst
Prior
Latest recommendation
Action
September 10, 2026
RBC Capital
Sector Perform
Outperform
upgrade
September 4, 2026
Morgan Stanley
Equal-Weight
Equal-Weight
maintained
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Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
This story originally appeared on Fintel.

RBC Capital Upgrades PACCAR to Outperform from Sector Perform

For those looking to find strong Auto-Tires-Trucks stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Paccar (PCAR) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Paccar is a member of the Auto-Tires-Trucks sector. This group includes 104 individual stocks and currently holds a Zacks Sector Rank of #13. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Paccar is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for PCAR's full-year earnings has moved 5.3% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, PCAR has returned 13.4% so far this year. Meanwhile, the Auto-Tires-Trucks sector has returned an average of -11.4% on a year-to-date basis. This shows that Paccar is outperforming its peers so far this year.
Polaris Inc (PII) is another Auto-Tires-Trucks stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 2%.
Over the past three months, Polaris Inc's consensus EPS estimate for the current year has increased 83.2%. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Paccar belongs to the Automotive - Domestic industry, a group that includes 17 individual companies and currently sits at #48 in the Zacks Industry Rank. This group has lost an average of 13% so far this year, so PCAR is performing better in this area. Polaris Inc is also part of the same industry.
Investors with an interest in Auto-Tires-Trucks stocks should continue to track Paccar and Polaris Inc. These stocks will be looking to continue their solid performance.
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
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PACCAR Inc. (PCAR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).

For Immediate Release
Chicago, IL – August 28, 2026 – Today, Zacks Equity General Motors GM, PACCAR PCAR, Ford F and Harley-Davidson HOG
Industry: Automobiles - Domestic
Link: https://www.zacks.com/commentary/2980827/4-domestic-auto-biggies-poised-to-benefit-from-industry-resilience
The Zacks Domestic Auto industry is showing resilience despite a challenging economic backdrop. New-vehicle sales remain relatively healthy as affluent consumers continue to support demand, while the EV market is experiencing a more uneven recovery following the expiration of federal tax incentives. At the same time, potential tax refunds and new deductions on qualifying auto-loan interest could provide some near-term support for vehicle purchases. To capitalize on the favorable industry outlook, established auto companies like General Motors, PACCAR, Ford and Harley-Davidson are worth watching.
About the Industry
The Zacks Domestic Auto industry includes companies involved in the design, manufacturing and sale of vehicles worldwide. These range from passenger cars and crossover vehicles to sport utility vehicles, trucks, vans, motorcycles and electric vehicles. The industry is highly cyclical and closely tied to consumer spending, while also supporting a large employment base. At the same time, it is undergoing a major transformation as automakers invest heavily in new technologies.
The role of software, electrification and digital connectivity is reshaping how vehicles are developed and sold. Many companies also operate engine and transmission plants and invest in research, development and testing of electric and autonomous vehicles.
Key Themes Shaping the Industry
Vehicle Demand Remains Resilient: U.S. vehicle demand has remained resilient despite economic uncertainty, elevated energy costs and weak consumer confidence. New-vehicle sales reached 1.36 million units in July, keeping the seasonally adjusted annualized rate (SAAR) at 16.3 million. The resilience suggests that higher borrowing and ownership costs have not yet significantly weakened demand.
However, the buyer mix is important. More affluent consumers account for a larger share of current purchases and may be better positioned to absorb inflation and higher vehicle prices. This could help support sales in the near term, although broader consumer weakness remains a risk.
EV Demand Is Showing Mixed Signals:The U.S. EV market remains in a transition phase, with July data offering both positive and negative signals. New EV sales rose 3.2% from June, but were still 41.5% below the year-ago level. EVs represented 5.6% of total new-vehicle sales, indicating that adoption remains relatively modest after demand was pulled forward ahead of the expiration of the federal EV tax credit.
Meanwhile, used EV sales increased 7.9% month over month and 10.1% year over year, helped by greater availability from lease returns and trade-ins. This suggests the used market could provide an important support for broader EV adoption.
Tax Benefits Could Provide Demand Boost:Tax-related savings could offer some support to vehicle demand in the coming months. The One Big Beautiful Bill Act, enacted in 2025, is expected to result in larger tax refunds for some households, potentially leaving consumers with more money for discretionary purchases such as vehicles.
The legislation also introduced a deduction of up to $10,000 annually on interest paid on qualifying auto loans. While these measures are unlikely to fundamentally change the industry's demand trajectory, they could provide a modest lift to purchases. The additional savings may also help consumers absorb higher vehicle costs, including price pressures associated with import tariffs.
Zacks Industry Rank Solid
The Zacks Automotive – Domestic industry is part of the broader Zacks Auto-Tires-Trucks sector. The industry currently carries a Zacks Industry Rank #67, which places it in the top 27% of more than 240 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates strong near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate.
We will present a few stocks that you might consider adding to your watchlist. Before that, let us discuss the industry’s recent stock market performance and valuation picture.
Industry Tops Sector, Lags S&P 500
The Domestic Auto industry has outperformed the auto sector and underperformed the Zacks S&P 500 composite over the past year. The industry has returned 14% compared with the sector and S&P 500’s growth of 3% and 20%, respectively.
Industry's Current Valuation
Since automotive companies are debt-laden, it makes sense to value them based on the EV/EBITDA (Enterprise Value/Earnings before Interest Tax Depreciation and Amortization) ratio. On the basis of the trailing 12-month enterprise value to EBITDA (EV/EBITDA), the industry is currently trading at 42.99X compared with the S&P 500’s 17.9X and the sector’s 24.69X. Over the past five years, the industry has traded as high as 69.8X, as low as 10.28X and at a median of 30.66X.
4 Stocks to Watch Now
General Motors: The company benefits from its U.S. market leadership, disciplined incentives and a profitable mix of trucks and SUVs that support margins, while the next-generation pickup cycle and added full-size SUV capacity offer earnings potential. GM is steadily transforming its software business into a meaningful profit driver. OnStar subscriptions continue to grow, while Super Cruise adoption is increasing across more vehicle models.
The company’s restructuring efforts in China are also paying off well. Strong cash generation supports continued buybacks and dividends. GM ended second-quarter of 2026 with automotive cash of $19.7 billion. Its raised outlook reflects better execution and supports greater overall confidence in the core business. It raised full-year adjusted free cash flow guidance to $9.5-$11.5 billion from the prior guidance of $9-$11 billion.
GM stock currently carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for General Motors’ 2026 and 2027 EPS implies year-over-year growth of 25% and 11%, respectively.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PACCAR: The trucking giant is benefiting from a recovering North American truck market, rising freight activity and improving fleet replacement demand. Its high-margin Parts business continues to provide stable earnings, supported by growing truck utilization and an extensive aftermarket network.Management now expects full-year 2026 Parts sales growth of 3% to 5%, with faster growth in the second half as utilization and freight activity rise.
Disciplined cost control, local-for-local manufacturing and a strong balance sheet provide financial flexibility to invest in future technologies and return capital to shareholders.As of June 30, 2026, the company held $8.67 billion of cash and marketable securities and stockholders’ equity of $20.32 billion. PACCAR’s A+/A1 credit ratings support funding access.
PACCAR stock currently carries a Zacks Rank #3. The Zacks Consensus Estimate for PACCAR’s 2026 and 2027 EPS implies year-over-year growth of 18% and 20%, respectively.
Ford: It is strengthening its long-term earnings profile through the continued expansion of Ford Pro, where commercial vehicles, software subscriptions and services provide recurring, higher-margin revenues. Ford is concentrating resources on trucks, large utilities, off-road models and richer trims that support pricing and margins. A favorable mix of trucks, utilities and hybrids, along with an affordable EV strategy, growing Ford Energy opportunities and solid liquidity support future growth.
Ford Energy adds a new revenue stream beyond vehicle sales by applying Ford’s battery manufacturing, service and monitoring capabilities to energy storage.Ford ended the second quarter of 2026 with $22.3 billion in cash and $43.4 billion in liquidity. The company generated $2.1 billion of adjusted free cash flow and raised its 2026 outlook to $6-$7 billion from $5-$6 billion.
F stock currently carries a Zacks Rank #3. The Zacks Consensus Estimate for Ford’s 2026 and 2027 EPS implies year-over-year growth of 70% and 4%, respectively.
Harley-Davidson: The company is taking steps to strengthen its business by aligning wholesale shipments with retail demand and improving dealer inventory. Its partnership with KKR and PIMCO has also shifted HDFS toward a more capital-light and lower-risk model. Meanwhile, the company’s restructuring and efficiency efforts remain key to its earnings recovery, with management targeting $150 million in fixed-cost savings and at least $350 million of HDMC adjusted EBITDA by 2027.
Product momentum is another positive, as the Super Glide launch exceeded expectations. Deadwood is entering dealerships and Sprint and Sportster remain in the pipeline. The Back to the Bricks initiative aims to boost rider engagement and dealer economics. With about $1.9 billion in cash, Harley-Davidson also retains financial flexibility to support growth.
HOG stock currently carries a Zacks Rank #3. The Zacks Consensus Estimate for Harley-Davidson’s 2027 EPS implies year-over-year growth of 199% from projected 2026 levels.
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PACCAR Inc. (PCAR) : Free Stock Analysis Report

Zacks Industry Outlook General Motors, PACCAR, Ford and Harley-Davidson

In the latest close session, Paccar (PCAR) was down 2.08% at $126.54. The stock's performance was behind the S&P 500's daily gain of 0.72%. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq gained 1.57%.
The truck maker's shares have seen a decrease of 3.47% over the last month, not keeping up with the Auto-Tires-Trucks sector's gain of 6.76% and the S&P 500's gain of 3.68%.
Analysts and investors alike will be keeping a close eye on the performance of Paccar in its upcoming earnings disclosure. On that day, Paccar is projected to report earnings of $1.61 per share, which would represent year-over-year growth of 43.75%. Meanwhile, our latest consensus estimate is calling for revenue of $7.54 billion, up 23.48% from the prior-year quarter.
PCAR's full-year Zacks Consensus Estimates are calling for earnings of $5.89 per share and revenue of $28.53 billion. These results would represent year-over-year changes of +17.56% and +8.74%, respectively.
Investors might also notice recent changes to analyst estimates for Paccar. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 4.06% rise in the Zacks Consensus EPS estimate. Currently, Paccar is carrying a Zacks Rank of #3 (Hold).
Investors should also note Paccar's current valuation metrics, including its Forward P/E ratio of 21.95. This expresses a premium compared to the average Forward P/E of 17.99 of its industry.
We can also see that PCAR currently has a PEG ratio of 1.02. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Domestic was holding an average PEG ratio of 0.95 at yesterday's closing price.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 67, positioning it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PCAR in the coming trading sessions, be sure to utilize Zacks.com.
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PACCAR Inc. (PCAR) : Free Stock Analysis Report

Paccar (PCAR) Stock Drops Despite Market Gains: Important Facts to Note

The Zacks Domestic Auto industry is showing resilience despite a challenging economic backdrop. New-vehicle sales remain relatively healthy as affluent consumers continue to support demand, while the EV market is experiencing a more uneven recovery following the expiration of federal tax incentives. At the same time, potential tax refunds and new deductions on qualifying auto-loan interest could provide some near-term support for vehicle purchases. To capitalize on the favorable industry outlook, established auto companies like General Motors GM, PACCAR PCAR, Ford F and Harley-Davidson HOG are worth watching.
About the Industry
The Zacks Domestic Auto industry includes companies involved in the design, manufacturing and sale of vehicles worldwide. These range from passenger cars and crossover vehicles to sport utility vehicles, trucks, vans, motorcycles and electric vehicles. The industry is highly cyclical and closely tied to consumer spending, while also supporting a large employment base. At the same time, it is undergoing a major transformation as automakers invest heavily in new technologies. The role of software, electrification and digital connectivity is reshaping how vehicles are developed and sold. Many companies also operate engine and transmission plants and invest in research, development and testing of electric and autonomous vehicles.
Key Themes Shaping the Industry
Vehicle Demand Remains Resilient: U.S. vehicle demand has remained resilient despite economic uncertainty, elevated energy costs and weak consumer confidence. New-vehicle sales reached 1.36 million units in July, keeping the seasonally adjusted annualized rate (SAAR) at 16.3 million. The resilience suggests that higher borrowing and ownership costs have not yet significantly weakened demand. However, the buyer mix is important. More affluent consumers account for a larger share of current purchases and may be better positioned to absorb inflation and higher vehicle prices. This could help support sales in the near term, although broader consumer weakness remains a risk.
EV Demand Is Showing Mixed Signals:The U.S. EV market remains in a transition phase, with July data offering both positive and negative signals. New EV sales rose 3.2% from June, but were still 41.5% below the year-ago level. EVs represented 5.6% of total new-vehicle sales, indicating that adoption remains relatively modest after demand was pulled forward ahead of the expiration of the federal EV tax credit. Meanwhile, used EV sales increased 7.9% month over month and 10.1% year over year, helped by greater availability from lease returns and trade-ins. This suggests the used market could provide an important support for broader EV adoption.
Tax Benefits Could Provide Demand Boost:Tax-related savings could offer some support to vehicle demand in the coming months. The One Big Beautiful Bill Act, enacted in 2025, is expected to result in larger tax refunds for some households, potentially leaving consumers with more money for discretionary purchases such as vehicles. The legislation also introduced a deduction of up to $10,000 annually on interest paid on qualifying auto loans. While these measures are unlikely to fundamentally change the industry's demand trajectory, they could provide a modest lift to purchases. The additional savings may also help consumers absorb higher vehicle costs, including price pressures associated with import tariffs.
Zacks Industry Rank Solid
The Zacks Automotive – Domestic industry is part of the broader Zacks Auto-Tires-Trucks sector. The industry currently carries a Zacks Industry Rank #67, which places it in the top 27% of more than 240 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates strong near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate.
We will present a few stocks that you might consider adding to your watchlist. Before that, let us discuss the industry’s recent stock market performance and valuation picture.
Industry Tops Sector, Lags S&P 500
The Domestic Auto industry has outperformed the auto sector and underperformed the Zacks S&P 500 composite over the past year. The industry has returned 14% compared with the sector and S&P 500’s growth of 3% and 20%, respectively.
One-Year Price Performance
Industry's Current Valuation
Since automotive companies are debt-laden, it makes sense to value them based on the EV/EBITDA (Enterprise Value/Earnings before Interest Tax Depreciation and Amortization) ratio. On the basis of the trailing 12-month enterprise value to EBITDA (EV/EBITDA), the industry is currently trading at 42.99X compared with the S&P 500’s 17.9X and the sector’s 24.69X. Over the past five years, the industry has traded as high as 69.8X, as low as 10.28X and at a median of 30.66X, as the chart below shows.
EV/EBITDA Ratio (Past Five Years)
4 Stocks to Watch Now
General Motors: The company benefits from its U.S. market leadership, disciplined incentives and a profitable mix of trucks and SUVs that support margins, while the next-generation pickup cycle and added full-size SUV capacity offer earnings potential. GM is steadily transforming its software business into a meaningful profit driver. OnStar subscriptions continue to grow, while Super Cruise adoption is increasing across more vehicle models.
The company’s restructuring efforts in China are also paying off well. Strong cash generation supports continued buybacks and dividends. GM ended second-quarter of 2026 with automotive cash of $19.7 billion. Its raised outlook reflects better execution and supports greater overall confidence in the core business. It raised full-year adjusted free cash flow guidance to $9.5-$11.5 billion from the prior guidance of $9-$11 billion.
GM stock currently carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for General Motors’ 2026 and 2027 EPS implies year-over-year growth of 25% and 11%, respectively.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PACCAR: The trucking giant is benefiting from a recovering North American truck market, rising freight activity and improving fleet replacement demand. Its high-margin Parts business continues to provide stable earnings, supported by growing truck utilization and an extensive aftermarket network.Management now expects full-year 2026 Parts sales growth of 3% to 5%, with faster growth in the second half as utilization and freight activity rise.
Disciplined cost control, local-for-local manufacturing and a strong balance sheet provide financial flexibility to invest in future technologies and return capital to shareholders.As of June 30, 2026, the company held $8.67 billion of cash and marketable securities and stockholders’ equity of $20.32 billion. PACCAR’s A+/A1 credit ratings support funding access.
PACCAR stock currently carries a Zacks Rank #3. The Zacks Consensus Estimate for PACCAR’s 2026 and 2027 EPS implies year-over-year growth of 18% and 20%, respectively.
Price & Consensus: PCAR
Ford: It is strengthening its long-term earnings profile through the continued expansion of Ford Pro, where commercial vehicles, software subscriptions and services provide recurring, higher-margin revenues. Ford is concentrating resources on trucks, large utilities, off-road models and richer trims that support pricing and margins. A favorable mix of trucks, utilities and hybrids, along with an affordable EV strategy, growing Ford Energy opportunities and solid liquidity support future growth.
Ford Energy adds a new revenue stream beyond vehicle sales by applying Ford’s battery manufacturing, service and monitoring capabilities to energy storage.Ford ended the second quarter of 2026 with $22.3 billion in cash and $43.4 billion in liquidity. The company generated $2.1 billion of adjusted free cash flow and raised its 2026 outlook to $6-$7 billion from $5-$6 billion.
F stock currently carries a Zacks Rank #3. The Zacks Consensus Estimate for Ford’s 2026 and 2027 EPS implies year-over-year growth of 70% and 4%, respectively.
Harley-Davidson: The company is taking steps to strengthen its business by aligning wholesale shipments with retail demand and improving dealer inventory. Its partnership with KKR and PIMCO has also shifted HDFS toward a more capital-light and lower-risk model. Meanwhile, the company’s restructuring and efficiency efforts remain key to its earnings recovery, with management targeting $150 million in fixed-cost savings and at least $350 million of HDMC adjusted EBITDA by 2027.
Product momentum is another positive, as the Super Glide launch exceeded expectations. Deadwood is entering dealerships and Sprint and Sportster remain in the pipeline. The Back to the Bricks initiative aims to boost rider engagement and dealer economics. With about $1.9 billion in cash, Harley-Davidson also retains financial flexibility to support growth.
HOG stock currently carries a Zacks Rank #3. The Zacks Consensus Estimate for Harley-Davidson’s 2027 EPS implies year-over-year growth of 199% from projected 2026 levels.
Price & Consensus: HOG
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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
This article originally published on Zacks Investment Research (zacks.com).