Based in Bellevue, Washington, PACCAR Inc. (PCAR) is a global manufacturer of premium light, medium, and heavy-duty commercial trucks under the Kenworth, Peterbilt, and DAF brands. The company also designs and manufactures advanced diesel engines, distributes truck parts, and provides financial, leasing, insurance, and information technology services to commercial vehicle customers worldwide. It is currently valued at a market capitalization of approximately $71.6 billion.
Shares of this leading commercial truck manufacturer have significantly outperformed the broader market over the past year. PCAR has gained 38.7% over this period, while the broader S&P 500 Index ($SPX) has rallied 22.2%. The outperformance has continued in 2026, with the stock up 24.4%, compared with the index's 13% gain over the same period.
Narrowing the comparison, PCAR has also outperformed the iShares U.S. Manufacturing ETF (MADE), which has gained 38% over the past year and 23.5% on a YTD basis.
On July 28, PACCAR delivered a solid Q2 2026, with net sales and financial services revenue rising marginally to $7.55 billion and net income rising 4.4% year over year to $1.43 per share, as improving freight rates and healthy customer demand supported higher truck production. The company also posted record PACCAR Parts revenue of $1.75 billion, while strong cash generation and continued investments in next-generation truck technologies underscored its operational strength. Its shares jumped 3.6% after the announcement.
For the current fiscal year, ending in December 2026, analysts expect PCAR’s EPS to increase 16.8% to $5.85 on a diluted basis. The company’s earnings surprise history is impressive. It surpassed the consensus estimate in each of the last four quarters.
Among the 17 analysts covering PCAR stock, the consensus is a "Moderate Buy." That rating is based on five "Strong Buys" and 12 "Hold" ratings.
This configuration is more bearish than it was three months ago, when the stock had six "Strong Buy" recommendations.
On July 30, Wells Fargo analyst Jerry Revich reiterated an "Equal Weight" rating on PACCAR and raised his price target to $157 from $125, reflecting improved expectations for the company's outlook despite maintaining a neutral stance.
The mean price target of $139.47 implies a 2.6% upside from PCAR's current share price. The Street-high target of $164 suggests upside potential of 20.6%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
