PACCAR Inc (PCAR): Today's Featured Automotive Laggard

PACCAR ( PCAR) pushed the Automotive industry lower today making it today's featured Automotive laggard. The industry as a whole closed the day up 0.2%. By the end of trading, PACCAR fell 30 cents (-0.8%) to $37.68 on average volume. Throughout the day, 3.2 million shares of PACCAR exchanged hands as compared to its average daily volume of 2.8 million shares. The stock ranged in price between $37.53-$38.81 after having opened the day at $38.16 as compared to the previous trading day's close of $37.98. Other company's within the Automotive industry that declined today were: Orbital ( OBT), down 6.6%, Quantum Fuel Systems Technologies Worldwide ( QTWW), down 4.5%, Drew Industries ( DW), down 4%, and Thor Industries ( THO), down 3.2%.

PACCAR Inc, together with its subsidiaries, designs, manufactures, and distributes light-, medium-, and heavy-duty trucks and related aftermarket parts worldwide. PACCAR has a market cap of $13.28 billion and is part of the consumer goods sector. The company has a P/E ratio of 11.7, above the average automotive industry P/E ratio of 11.5 and below the S&P 500 P/E ratio of 17.7. Shares are up 1.4% year to date as of the close of trading on Tuesday. Currently there are five analysts that rate PACCAR a buy, no analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates PACCAR as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, attractive valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Enova Systems ( ENA), up 6.9%, Wabco Holdings Incorporated ( WBC), up 3.4%, Motorcar Parts of America ( MPAA), up 3.2%, and Visteon ( VC), up 3.1%, were all gainers within the automotive industry with Polaris Industries ( PII) being today's featured automotive industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the automotive industry could consider Consumer Discretionary Sel Sec SPDR ( XLY) while those bearish on the automotive industry could consider ProShares Ultra Sht Consumer Goods ( SZK).
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