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 2.6%. By the end of trading, PACCAR fell 87 cents (-2.1%) to $40.55 on average volume. Throughout the day, 2.6 million shares of PACCAR exchanged hands as compared to its average daily volume of 2.2 million shares. The stock ranged in price between $40.47-$41.60 after having opened the day at $41.60 as compared to the previous trading day's close of $41.42. Other companies within the Automotive industry that declined today were: Enova Systems ( ENA), down 13%, Tesla Motors ( TSLA), down 9.8%, Stoneridge ( SRI), down 8.4%, and Quantum Fuel Systems Technologies Worldwide ( QTWW), down 6.2%.
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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 $14.66 billion and is part of the consumer goods sector. The company has a P/E ratio of 12.1, equal to the average automotive industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 10.7% year to date as of the close of trading on Monday. Currently there are six analysts that rate PACCAR a buy, one analyst rates it a sell, and eight 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, attractive valuation levels, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

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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