Is PACCAR Inc (PCAR) Higher YOY trend of 14.72x justified?

In comparison to the PB of share holder equity, return on net assets is high at 18.80%, however , it’s also wise to check out its total debt ratio. Temporary downside caused buying opportunity with money flow recorded at $32.24 Million keeping this in mind PACCAR Inc up down ratio came in at 2.87X for Friday, Dec 15 with buying at $49.47 ML in positive, while buying at dips stood at $17.24 M , the positive divergence With respect to BTs’ , money flow ended at $34.03 MN . With tick up at $35.10 MN and tick down at $1.07 M led an up down ratio of 32.73x., and as traders bought in to weakness and they expect price to reverse and move against the trader..

PACCAR Inc has ability to meet its short term obligations with its most liquid assets, and it is not difficult to see with Quick R at 4.5 PCAR liquidity position is stable .

PACCAR Inc stocks at 1.22 Beta exhibit lower association with the stock market index, and as, since prices is expected to increase by more than the index growth during bull markets and decrease more than the index in down markets.

PACCAR Inc is one of the predictable Consumer Goods companies in the world with consistency in financial performance. Current net loss per stock of -67.10% point to lower in EPS .

Analysts are moving towards negative rating for PACCAR Inc On research analysts Citigroup rate the stock a Neutral or the equivalentWhile lowering its price target to $75 from $81 represents a 7.41% movement , investors continue to be on edge.The company currently trades at 5.71% above from its 200 MA , and asset is kind of difficult to assess as there is a pattern taking shape in its general direction , however clear pattern is missing.

As a value stock , company fits the mold with a PB of 3.07. Total Money flow for the day ended at $5815.74mn with tick up at $10992.23mn and tick down at $5176.49mn led to up /down ratio of 2.12x. With respect to block trades, money flow ended $5853.85mn with tick up at $7568.70mn and tick down at $1714.85mn led an up /down ratio of 4.41xConsumer Goods sector is staging a rebound at 6247.63 points, comparatively to the broader index, has seen a change of 1.00 .

PCAR set to see more forward pe indicating better growth , yet forward PE by calculation is vulnerable to assessment errors, with anticipated earnings for PACCAR Inc are reported at 14.72x.

It is relevant to recognize that the past 12 months price-earnings has been below 14.72 forward PE value . PACCAR Inc stocks are considered as value oriented assets with strong investors confidence and current stock price are above it’s current earnings per share.

However PACCAR Inc falls short of Consumer Goods sector PE by -3.0 with sector PE at 20.74. With 8.25% expansion Year on Year set for over 2017-2022 PACCAR Inc has enough growth left to justify 17.74 PE.

Company is expected to deliver high revenue and earnings growth, however this might be hard to come by with PEG at 2.15 . Higher Consumer Goods sector PEG ratio of 1.95 point to me that the asset is fully priced .

Company below its 52 week high by -5.46% but I don’t think there’s any huge need to panic . It appears that with prices nearing yearly high, company are reflecting on the near term market outlook .

Considering adjusted growth and assets , company’s regulated ROA is 6.30% 2017 , with very aggressive growth , company has really successfully able to contain their assets to growth quality at a much comfortable level .

We can see RSI is not responding to the standard resistance patterns , however , it is reacting better against 55.48 resistance, however thought stock are yet to confirm any pattern , occurrence of possible bullish reversal can predict resumption of the uptrend .

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