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

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

PACCAR ( PCAR) pushed the Automotive industry lower today making it today's featured Automotive laggard. The industry as a whole closed the day down 0.2%. By the end of trading, PACCAR fell $1.05 (-1.8%) to $56.20 on heavy volume. Throughout the day, 3,366,495 shares of PACCAR exchanged hands as compared to its average daily volume of 1,540,400 shares. The stock ranged in price between $55.63-$56.50 after having opened the day at $55.73 as compared to the previous trading day's close of $57.25. Other companies within the Automotive industry that declined today were: Accuride ( ACW), down 6.0%, Gentex Corporation ( GNTX), down 5.7%, Allison Transmission Holdings ( ALSN), down 2.8% and Oshkosh Corporation ( OSK), down 2.8%.

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 $20.4 billion and is part of the consumer goods sector. Shares are up 27.9% year to date as of the close of trading on Tuesday. Currently there are 6 analysts that rate PACCAR a buy, no analysts rate it a sell, and 9 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, Federal-Mogul ( FDML), up 6.2%, Supreme Industries ( STS), up 4.1%, Standard Motor Products ( SMP), up 3.0% and Gentherm ( THRM), up 2.8% , were all gainers within the automotive industry with Delphi Automotive ( DLPH) 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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