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Is NASDAQ:PCAR suited for growth investing?

By Mill Chart

Last update: Sep 4, 2023

Growth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if PACCAR INC (NASDAQ:PCAR) is suited for growth investing. Investors should of couse do their own research, but we spotted PACCAR INC showing up in our Louis Navellier growth screen, so it may be worth spending some more time on it.

Why NASDAQ:PCAR may be interesting for growth investors.

  • PACCAR INC exhibits a strong Return on Equity (ROE) of 24.18%, indicating the company's ability to generate solid returns on shareholder investments. This metric reflects the company's efficient utilization of equity capital and its profitability.
  • With a track record of beating EPS estimates in the last 4 quarters, PACCAR INC showcases its consistent ability to deliver earnings surprises. This reflects the company's strong execution and its competitive position in the market.
  • With notable 1-year revenue growth of 27.8%, PACCAR INC exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for future growth.
  • PACCAR INC has experienced 24.06% q2q revenue growth, indicating a significant sales increase.
  • With a favorable trend in its operating margin over the past year, PACCAR INC demonstrates its ability to enhance profitability through efficient operations. This growth reflects the company's focus on optimizing its cost structure.
  • With a favorable trend in its free cash flow (FCF) over the past year, PACCAR INC demonstrates its ability to generate robust cash flows and maintain financial stability. This growth reflects the company's focus on efficient capital allocation and cash management.
  • PACCAR INC has demonstrated consistent growth in its earnings per share (EPS) from one quarter to another (Q2Q), with a 68.84% increase. This indicates improving financial performance and the company's effective management of its operations.
  • The average next Quarter EPS Estimate for PACCAR INC has experienced a 13.3% change in the last 3 months, reflecting evolving expectations by analysts regarding the company's EPS performance.
  • The recent financial report of PACCAR INC demonstrates a 68.84% increase in quarterly earnings compared to the previous quarter. This growth indicates positive momentum in the company's financials and suggests a promising upward trend
  • The earnings per share (EPS) growth of PACCAR INC are accelerating: the current Q2Q growth of 68.84% is above the previous year Q2Q growth of -2.13%. Earnings momentum and acceleration are key for high growth systems.

Fundamental Analysis Observations

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to PCAR. PCAR was compared to 133 industry peers in the Machinery industry. PCAR scores excellent on profitability, but there are some minor concerns on its financial health. PCAR scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes PCAR very considerable for value investing!

Our latest full fundamental report of PCAR contains the most current fundamental analsysis.

More ideas for growth investing can be found on ChartMill in our Lois Navellier screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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