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Shares of truck maker PACCAR (NASDAQ:PCAR) have been rolled over in the past year. The stock is down 28% over the last twelve months. Investors are concerned with slowing growth in Europe and a potential recession.

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Investors appear to be ignoring the company's strong performance in the United States and Canada, as well as growing revenue in the rest of the world. The U.S. and Canada account for about 52% of PACCAR's truck sales. The table below represents the stellar year-over-year growth in truck sales it has experienced in all regions.

PACCAR builds popular large truck brands Peterbilt, Kenworth, and DAF. The company's DAF unit is building a production plant in Brazil, as the company continues to grow around the world. PACCAR is making a comeback after the recession sent truck sales plummeting. Even during the downturn, it remained profitable. In response to the recession, PACCAR slashed its dividend. The company has been raising the dividend again, most recently in July 2011 to the current $0.18 per quarter. PACCAR shares yield 1.79%.

Shares appear to be undervalued. The stock trades at 16.66 times current earnings and 12 times forward earnings. The company has a price-to-earnings growth (PEG) ratio of 0.55. PACCAR trades at a price-to-owner earnings ratio of less than 17.

A recent article in Barron's, Ready to Roll in 2012, pointed out the aging truck fleet in the U.S. and Canada. The average age of large trucks has risen to almost 7 years versus 5.3 years in 2000. This is spurring a replacement cycle as companies' costs for maintenance are increasing and older models are less fuel efficient.

PACCAR should benefit as the economic recovery continues in the United States. Europe remains a concern despite the company's year-over-year sales increases in the region. However, if Europe's economy can muddle through a recession without a major crisis, the company can continue to power ahead. Investors may want to consider loading up the truck with shares of PACCAR.

Source: Paccar: Now May Be Time To Load Up The Truck