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PACCAR Inc (PCAR) Stock Analysis

By Nova Skye | AltStation.io | Updated February 07, 2026

Price

$126.97

Change

-0.35%

Market Cap

$66.71B

Avg Volume

3.3M

Company Overview

PACCAR Inc designs and manufactures a wide range of commercial trucks, from light to heavy-duty models. Their products are essential for the transportation sector, and they cater to businesses across North America, Europe, and other international markets. The company operates under several well-recognized brands, including Kenworth, Peterbilt, and DAF. Beyond trucks, PACCAR also sells aftermarket parts and offers financial services related to truck leasing and financing, boosting its revenue streams.

PACCAR is a market leader in the heavy-duty truck segment. Their strong brand recognition, extensive dealer network, and reputation for reliability give them a competitive edge. However, they face pressure from rivals like Daimler Trucks and Volvo Trucks, which are formidable in both technology and market share. Additionally, fluctuations in fuel prices and regulatory changes on emissions can pose threats to profitability.

Currently, PACCAR is in a growth phase, driven by increasing demand for freight transportation and investment in electric vehicle technology. The company recently reported a 10% increase in truck sales year-over-year, highlighting a robust market for their products. Strategic moves toward enhancing their financial services segment and a push into alternative fuel solutions are setting the stage for future expansion.

Key Financials

Market Cap

$66.71B

Revenue

$28.44B

EBITDA

$3.79B

Gross Margin

14.0%

Profit Margin

8.4%

Revenue Growth

-13.7%

Total Cash

$9.25B

Total Debt

$17.18B

Free Cash Flow

$13.13B

52-Week Price Performance Analysis

Price Statistics

P/E Ratio

28.15

Forward P/E

18.87

Beta

1.04

52-Week High

$131.88

52-Week Low

$84.65

EPS

$4.51

50-Day Avg

$115.08

200-Day Avg

$101.16

Price/Book

3.46

Technical Analysis

PACCAR Inc (PCAR) has demonstrated a strong upward trend over the 52-week period, with a current price of $126.97, reflecting a notable 23.2% increase. Key resistance is identified at $127.35, with previous support emerging around $100 established in October. The bullish trend shows a series of higher lows and higher highs, indicating overall market confidence. Recent momentum over the last few weeks has been positive, peaking near the $127 level after a brief consolidation. Currently, at $126.97, the stock is positioned very close to its 52-week high, implying continued strength and a potential breakout as it tests resistance. The overall outlook remains optimistic as the stock maintains its upward trajectory.

Recent News and Developments

Market Update

Here’s a summary of the latest news and developments for PACCAR Inc (PCAR) stock from the past week (February 1, 2026 – February 7, 2026):

Market Update

### Analyst Sentiment and Price Target Adjustments
While some analyst upgrades were noted slightly outside the immediate past week (late January), the overall sentiment from multiple analysts remains a “Hold” for PACCAR Inc. However, several firms, including Truist Securities and JPMorgan, recently raised their price targets for PCAR. The average 12-month price target across analysts is around $12

Market Update

### PACCAR’s Q4 2025 Earnings Overview
PACCAR reported its fourth-quarter 2025 results, with sales of $6.25 billion and net income of $556.9 million, or $1.06 per diluted share. While these figures were lower than the previous year, they surpassed revenue forecasts. For the full year 2025, PACCAR achieved revenues of $28.4 billion and an adjusted net income of $2.64 billion, marking its 87th conse

Market Sentiment and Analyst Recommendations

Bull Case

PACCAR is firing on multiple cylinders right now. The company just posted 87 consecutive years of profitability while managing a 13.7% revenue decline, which means margin management is solid. More importantly, dealer inventory sits at just 2.2 months–dangerously low–which gives PACCAR significant pricing power as 2026 demand accelerates. Management is guiding for 230,000 to 270,000 Class 8 trucks sold in North America this year, up sharply from the soft 2025 market. The autonomous partnership with Aurora Innovation targeting a Q2 2026 commercial launch is a legitimate long-term differentiator. Parts and Financial Services hit record revenue, a less cyclical revenue stream that cushions downturns. At 28.15x forward P/E with a DCF analysis suggesting 17.3% upside to intrinsic value, the stock is not expensive for a company about to lap a demand recovery.

Bear Case

PACCAR’s 13.7% revenue decline in 2025 is the real story here, not the earnings beat. The market is pricing in a strong 2026 recovery, but freight conditions could deteriorate if economic growth stalls. The stock already sits near its 52-week high at $126.97, leaving limited margin of safety if guidance disappoints. Total debt of $17.18B against $9.25B in cash is manageable but not pristine, and a prolonged downturn would pressure the balance sheet. Analyst targets range wildly from $92 to $150, suggesting deep disagreement on fair value. The autonomous truck launch is still a Q2 2026 bet–execution risk is real, and competition from Tesla, Waymo, and others is intensifying. If the EPA 2027 pre-buy tailwind doesn’t materialize as expected, PACCAR loses a key earnings driver.

What to Watch

The Q1 2026 earnings report (likely April) will be the first real test of whether dealer inventory reset and pricing power are materializing. Watch for actual order intake and backlog growth versus management’s 230,000-270,000 vehicle guidance. Monitor freight tonnage and trucking utilization rates–a sudden softening in spot rates would signal demand weakness ahead. The Aurora Innovation partnership update in Q2 2026 matters; any delays to the driverless launch would undermine the innovation narrative. Track dealer inventory levels monthly; if they stay below 2.5 months, pricing power holds. Watch for any tariff announcements from the new administration that could force surcharges back onto trucks. Finally, pay attention to competitor earnings calls (Volvo, Daimler) for cross-market demand signals that validate or contradict PACCAR’s recovery thesis.

Analyst Consensus

BUY

Based on 17 analyst opinions

Low Target

$92.00

Mean Target

$122.15

High Target

$150.00

Earnings and Financial Data

Sector

Industrials

Industry

Farm & Heavy Construction Machinery

Employees

N/A

Earnings & Dividends

Next Earnings

Apr 28, 2026

EPS (Trailing)

$4.51

Dividend Yield

104.0%

Payout Ratio

29.3%

Frequently Asked Questions

Is PCAR a good stock to buy?

Analysts recommend buying PACCAR Inc (PCAR) with a target price of $122.15, indicating potential upside from its current price of $126.97. However, the stock is near the high end of its 52-week range, so buying now may not offer the best entry point.

What is PCAR’s price target?

The current analyst price target for PACCAR is $122.15. Given the stock’s current price of $126.97, it suggests that the upside may be limited in the short term.

Does PCAR pay a dividend?

Yes, PACCAR has a significant dividend yield of 104.0%. This makes it an attractive option for income-focused investors.

What is PCAR’s P/E ratio?

PACCAR’s price-to-earnings (P/E) ratio stands at 28.15, while its forward P/E is 18.87. This indicates that the stock might be overvalued based on current earnings but could be more attractive relative to expected future earnings.

What is PACCAR’s market cap?

PACCAR Inc has a market capitalization of $66.71 billion. This positions it as a major player in the industrials sector, specifically within the farm and heavy construction machinery industry.

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Disclaimer: This report is for informational purposes only and does not constitute financial advice. The analysis and opinions expressed are those of AltStation.io and should not be relied upon as the sole basis for investment decisions. Always conduct your own research and consult with a qualified financial advisor before making investment decisions. Past performance does not guarantee future results. Updated February 07, 2026.