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 0.7%. By the end of trading, PACCAR fell $0.68 (-1.3%) to $53.22 on light volume. Throughout the day, 898,449 shares of PACCAR exchanged hands as compared to its average daily volume of 1,854,600 shares. The stock ranged in price between $53.22-$54.06 after having opened the day at $53.68 as compared to the previous trading day's close of $53.90. Other companies within the Automotive industry that declined today were: Miller Industries ( MLR), down 5.0%, Accuride ( ACW), down 4.0%, Federal Signal ( FSS), down 3.8% and Fuel Systems Solutions ( FSYS), down 3.8%.
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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 $18.6 billion and is part of the consumer goods sector. The company has a P/E ratio of 18.3, above the S&P 500 P/E ratio of 17.7. Shares are up 19.2% year to date as of the close of trading on Thursday. Currently there are 6 analysts that rate PACCAR a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates PACCAR as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations and reasonable valuation levels. 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, Patrick Industries ( PATK), down 5.3%, Stoneridge ( SRI), down 3.9%, Orbital Corporation ( OBT), down 3.8% and China Zenix Auto International Ltd ADR ( ZX), down 2.2% , 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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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