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

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

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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 own products and for sale to third party manufacturers of trucks and buses. Besides supplying aftermarket parts, PACCAR also offers finance and leasing services.

PCAR sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Automotive - Domestic industry's P/E of 9.9X, shares of Paccar are trading at a forward P/E of 9.1X. PCAR also has a PEG Ratio of 0.9, a Price/Cash Flow ratio of 9.8X, and a Price/Sales ratio of 1.2X.

Many value investors pay close attention to a company's earnings as well. For PCAR, eight analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $1.14 to $7.83 per share for 2023. Per share PCAR boasts an average earnings surprise of 16.6%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding PCAR to their portfolios.

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PACCAR Inc. (PCAR) : Free Stock Analysis Report

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Zacks Investment Research