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PACCAR Will Drive More Profits

Dec. 03, 2021 2:26 PM ETPACCAR Inc (PCAR)1 Comment
David Trainer profile picture
David Trainer


  • PCAR has underperformed the market by 32% since we made it a Long Idea in July 2020, per Figure 1. Despite its underperformance, we believe the stock still presents favorable upside.
  • At its current price, PACCAR has a price to economic book value (PEBV) ratio of 0.9, which means the market expects profits to permanently decline by 10%.
  • In a scenario where PACCAR is able to achieve modest margin improvement and meet consensus revenue growth expectations, the stock is worth $155/share today.
  • Looking for more investing ideas like this one? Get them exclusively at Value Investing 2.0 . Learn More »

Kenworth Semi Tractor Trailer Trucks lined up for sale. Kenworth is owned by Paccar.

jetcityimage/iStock Editorial via Getty Images

PACCAR Inc. (NASDAQ:PCAR) was added to our list of Long Ideas in July 2020. The stock has underperformed the market in 2021, but strong brand awareness, manufacturing expertise, and a large distribution network give it a

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This article was written by

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We aim to help investor make more intelligent capital allocation decisions. Our research is driven by proven-superior fundamental data, models and equity/credit ratings.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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Comments (1)

Waiting for the special dividend in January.
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