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

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

PACCAR ( PCAR) pushed the Automotive industry lower today making it today's featured Automotive laggard. The industry as a whole closed the day down 0.3%. By the end of trading, PACCAR fell 65 cents (-1.6%) to $40.52 on light volume. Throughout the day, 1.5 million shares of PACCAR exchanged hands as compared to its average daily volume of 2.6 million shares. The stock ranged in price between $40.32-$41.20 after having opened the day at $41.13 as compared to the previous trading day's close of $41.17. Other companies within the Automotive industry that declined today were: ATC Venture Group ( ATC), down 5.4%, Supreme Industries ( STS), down 4.8%, Amerigon ( THRM), down 3.7%, and Federal-Mogul ( FDML), down 3.5%.

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 $14.46 billion and is part of the consumer goods sector. The company has a P/E ratio of 12, above the average automotive industry P/E ratio of 11.9 and below the S&P 500 P/E ratio of 17.7. Shares are up 9.9% year to date as of the close of trading on Tuesday. Currently there are six 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 revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, Enova Systems ( ENA), up 9.1%, China Zenix Auto International Ltd ADR ( ZX), up 5.3%, Visteon ( VC), up 2.5%, and Winnebago Industries ( WGO), up 2.5%, were all gainers within the automotive industry with Tesla Motors ( TSLA) 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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