Tuesday Sector Laggards: Rental, Leasing, & Royalty, Vehicle Manufacturers
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 23 2024
0mins
Should l Buy PCAR?
Source: NASDAQ.COM
Market Performance: Vehicle manufacturers' shares are down approximately 1.8%, with PACCAR and Polaris leading the decline at 8.2% and 7.2%, respectively.
Sector Laggards: The rental, leasing, and royalty sectors, along with vehicle manufacturers, are identified as laggards in the market on Tuesday.
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Analyst Views on PCAR
Wall Street analysts forecast PCAR stock price to fall
10 Analyst Rating
3 Buy
7 Hold
0 Sell
Moderate Buy
Current: 124.840
Low
90.00
Averages
109.25
High
133.00
Current: 124.840
Low
90.00
Averages
109.25
High
133.00
About PCAR
PACCAR Inc is a multinational company operating in three principal industry segments. The Truck segment includes the design, manufacture and distribution of light-, medium- and heavy-duty commercial trucks. Heavy-duty trucks have a gross vehicle weight (GVW) of over 33,000 lbs (Class 8) in North America and over 16 metric tons in Europe and South America. Medium-duty trucks have a GVW ranging from 19,500 to 33,000 lbs (Class 6 to 7) in North America, and in Europe, light- and medium-duty trucks range between 6 and 16 metric tons. Trucks are configured with the engine in front of cab (conventional) or cab-over-engine (COE). The Parts segment includes the distribution of aftermarket parts for trucks and related commercial vehicles. The Financial Services segment includes finance and leasing products and services provided to customers and dealers. Its finance and leasing activities are principally related to the Company’s products and associated equipment.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Heavy Equipment Manufacturers' Stocks Surge
- Strong Market Performance: In 2026, farm and construction machinery stocks are soaring double digits in a sideways market, with Paccar, Caterpillar, and Deere significantly outperforming the S&P 500, indicating robust industry recovery and heightened investor confidence.
- Paccar's Impressive Earnings: Paccar's Q4 earnings report on January 27 revealed adjusted earnings of $1.06 per share and revenue of $6.8 billion, both exceeding analyst expectations, with the stock rising over 16% this year, reflecting strong demand in the heavy truck market.
- Caterpillar's Stellar Results: Caterpillar's Q4 results released on January 29 showed an 18% year-over-year revenue increase to $19.1 billion, surpassing market expectations, particularly driven by a 23% sales increase in its gas turbine division due to booming AI data center construction, with projections to double power generation equipment sales by 2030.
- Optimistic Industry Outlook: The heavy construction equipment market is forecasted to grow at an annual rate of 6.2% through 2034, reaching $372 billion, while the agriculture equipment market is expected to recover from a downturn, projected to grow at 8.6% annually through 2035, reaching $689 billion, indicating long-term investment potential.
See More
Madison Asset Management Acquires MSA Safety Shares
- New Position Disclosure: Madison Asset Management disclosed a new position in MSA Safety, acquiring 568,244 shares valued at approximately $91 million, representing 1% of its $8.7 billion AUM, indicating confidence in the company's potential.
- Holding Rankings: Following this acquisition, MSA Safety remains outside Madison's top five holdings, which include ACGL, ROST, PCAR, GOOGL, and APH, reflecting the firm's ongoing commitment to a diversified investment strategy.
- Financial Performance: MSA Safety reported a trailing twelve-month revenue of $1.86 billion and a net income of $279.92 million, with a dividend yield of 1.13%, although its stock has underperformed the S&P 500 index over the past year, suggesting market caution regarding its growth prospects.
- Future Outlook: MSA Safety is scheduled to report its fourth-quarter results on February 11, where management is expected to provide guidance for 2026, and investors should pay attention to anticipated low-single-digit sales growth for the year ahead.
See More
Paccar VP Sells Shares
- Executive Stock Sale: Paccar's Vice President Paulo Henrique Bolgar sold 12,183 shares on January 30, 2026, indicating a personal financial decision by an executive regarding company stock.
- Market Reaction Insight: This stock sale may prompt market scrutiny of Paccar's future performance, although executive sales do not necessarily indicate changes in the company's fundamentals.
- Investor Confidence Impact: Executive stock transactions can influence investor confidence, particularly in the absence of additional information, potentially leading to short-term stock price volatility.
- Compliance and Transparency: Such transactions must adhere to SEC reporting requirements, ensuring market transparency and protecting investors' right to information.
See More
Paccar Reports Earnings Beat for 2025 Yet Stock Declines
- Earnings Beat: Paccar reported Q4 2025 earnings of $1.06 per share, surpassing analyst expectations of $1.05, with sales reaching $6.8 billion; however, the stock fell 1.9%, indicating market disappointment despite the earnings beat.
- Sales Decline: The company's sales dropped 14% year-over-year, with full-year 2025 sales down 16% to $28.4 billion, highlighting significant market challenges and weak demand affecting overall performance.
- Stable Cash Flow: Free cash flow remained steady at $3.7 billion, significantly exceeding the reported net income of $2.4 billion, indicating strong cash management, yet failing to boost investor confidence.
- Bleak Market Outlook: With a market capitalization of $62.8 billion, Paccar's stock trades at a high P/E ratio of 26 times, lacking growth guidance and with analysts forecasting only 5% long-term earnings growth, leading to cautious investor sentiment.
See More
PACCAR Reports Record Q4 Earnings and Optimistic 2026 Outlook
- Revenue and Profit Growth: PACCAR's Q4 revenues reached $6.8 billion with a net income of $557 million, while annual revenues hit $28.4 billion and adjusted net income was $2.64 billion, marking the fourth highest profit year in the company's history and demonstrating robust financial performance.
- Parts and Financial Services Records: PACCAR Parts achieved annual revenues of $6.9 billion, up 3%, while PACCAR Financial Services reported record annual revenues of $2.2 billion with an 11% increase in pretax income to $485 million, indicating strong performance across multiple business segments.
- Optimistic Market Outlook: The U.S. and Canadian Class 8 truck market is projected to range between 230,000 to 270,000 vehicles in 2026, driven by economic growth, regulatory clarity, and improving freight conditions, suggesting a potential boost in customer demand.
- Capital and R&D Investments: PACCAR's capital project investments totaled $728 million, with R&D investments at $446 million, reflecting the company's ongoing commitment to future growth, particularly as parts sales are expected to grow by 4% to 8% this year.
See More
PACCAR Q4 Earnings Beat Expectations with Strong Revenue
- Earnings Beat: PACCAR reported Q4 GAAP EPS of $1.06, exceeding expectations by $0.01, demonstrating resilience amid market fluctuations.
- Revenue Decline Yet Surpassing Estimates: Despite a 13.8% year-over-year revenue decline to $6.82 billion, the figure surpassed market expectations by $740 million, indicating the company's ability to maintain relative sales stability in adversity.
- Consistent Cash Dividends: PACCAR declared a cash dividend of $2.72 per share for 2025, including a year-end cash dividend of $1.40 per share paid on January 7, 2026, reflecting the company's commitment to shareholder returns.
- Record Parts Revenue: PACCAR achieved record parts revenue of $1.74 billion with a pretax income of $415 million, highlighting the company's strong performance and profitability in the parts market.
See More
Heavy Equipment Manufacturers' Stocks Surge
- Strong Market Performance: In 2026, farm and construction machinery stocks are soaring double digits in a sideways market, with Paccar, Caterpillar, and Deere significantly outperforming the S&P 500, indicating robust industry recovery and heightened investor confidence.
- Paccar's Impressive Earnings: Paccar's Q4 earnings report on January 27 revealed adjusted earnings of $1.06 per share and revenue of $6.8 billion, both exceeding analyst expectations, with the stock rising over 16% this year, reflecting strong demand in the heavy truck market.
- Caterpillar's Stellar Results: Caterpillar's Q4 results released on January 29 showed an 18% year-over-year revenue increase to $19.1 billion, surpassing market expectations, particularly driven by a 23% sales increase in its gas turbine division due to booming AI data center construction, with projections to double power generation equipment sales by 2030.
- Optimistic Industry Outlook: The heavy construction equipment market is forecasted to grow at an annual rate of 6.2% through 2034, reaching $372 billion, while the agriculture equipment market is expected to recover from a downturn, projected to grow at 8.6% annually through 2035, reaching $689 billion, indicating long-term investment potential.
See More
Madison Asset Management Acquires MSA Safety Shares
- New Position Disclosure: Madison Asset Management disclosed a new position in MSA Safety, acquiring 568,244 shares valued at approximately $91 million, representing 1% of its $8.7 billion AUM, indicating confidence in the company's potential.
- Holding Rankings: Following this acquisition, MSA Safety remains outside Madison's top five holdings, which include ACGL, ROST, PCAR, GOOGL, and APH, reflecting the firm's ongoing commitment to a diversified investment strategy.
- Financial Performance: MSA Safety reported a trailing twelve-month revenue of $1.86 billion and a net income of $279.92 million, with a dividend yield of 1.13%, although its stock has underperformed the S&P 500 index over the past year, suggesting market caution regarding its growth prospects.
- Future Outlook: MSA Safety is scheduled to report its fourth-quarter results on February 11, where management is expected to provide guidance for 2026, and investors should pay attention to anticipated low-single-digit sales growth for the year ahead.
See More
Paccar VP Sells Shares
- Executive Stock Sale: Paccar's Vice President Paulo Henrique Bolgar sold 12,183 shares on January 30, 2026, indicating a personal financial decision by an executive regarding company stock.
- Market Reaction Insight: This stock sale may prompt market scrutiny of Paccar's future performance, although executive sales do not necessarily indicate changes in the company's fundamentals.
- Investor Confidence Impact: Executive stock transactions can influence investor confidence, particularly in the absence of additional information, potentially leading to short-term stock price volatility.
- Compliance and Transparency: Such transactions must adhere to SEC reporting requirements, ensuring market transparency and protecting investors' right to information.
See More
Paccar Reports Earnings Beat for 2025 Yet Stock Declines
- Earnings Beat: Paccar reported Q4 2025 earnings of $1.06 per share, surpassing analyst expectations of $1.05, with sales reaching $6.8 billion; however, the stock fell 1.9%, indicating market disappointment despite the earnings beat.
- Sales Decline: The company's sales dropped 14% year-over-year, with full-year 2025 sales down 16% to $28.4 billion, highlighting significant market challenges and weak demand affecting overall performance.
- Stable Cash Flow: Free cash flow remained steady at $3.7 billion, significantly exceeding the reported net income of $2.4 billion, indicating strong cash management, yet failing to boost investor confidence.
- Bleak Market Outlook: With a market capitalization of $62.8 billion, Paccar's stock trades at a high P/E ratio of 26 times, lacking growth guidance and with analysts forecasting only 5% long-term earnings growth, leading to cautious investor sentiment.
See More
PACCAR Reports Record Q4 Earnings and Optimistic 2026 Outlook
- Revenue and Profit Growth: PACCAR's Q4 revenues reached $6.8 billion with a net income of $557 million, while annual revenues hit $28.4 billion and adjusted net income was $2.64 billion, marking the fourth highest profit year in the company's history and demonstrating robust financial performance.
- Parts and Financial Services Records: PACCAR Parts achieved annual revenues of $6.9 billion, up 3%, while PACCAR Financial Services reported record annual revenues of $2.2 billion with an 11% increase in pretax income to $485 million, indicating strong performance across multiple business segments.
- Optimistic Market Outlook: The U.S. and Canadian Class 8 truck market is projected to range between 230,000 to 270,000 vehicles in 2026, driven by economic growth, regulatory clarity, and improving freight conditions, suggesting a potential boost in customer demand.
- Capital and R&D Investments: PACCAR's capital project investments totaled $728 million, with R&D investments at $446 million, reflecting the company's ongoing commitment to future growth, particularly as parts sales are expected to grow by 4% to 8% this year.
See More
PACCAR Q4 Earnings Beat Expectations with Strong Revenue
- Earnings Beat: PACCAR reported Q4 GAAP EPS of $1.06, exceeding expectations by $0.01, demonstrating resilience amid market fluctuations.
- Revenue Decline Yet Surpassing Estimates: Despite a 13.8% year-over-year revenue decline to $6.82 billion, the figure surpassed market expectations by $740 million, indicating the company's ability to maintain relative sales stability in adversity.
- Consistent Cash Dividends: PACCAR declared a cash dividend of $2.72 per share for 2025, including a year-end cash dividend of $1.40 per share paid on January 7, 2026, reflecting the company's commitment to shareholder returns.
- Record Parts Revenue: PACCAR achieved record parts revenue of $1.74 billion with a pretax income of $415 million, highlighting the company's strong performance and profitability in the parts market.
See More
