With a market cap of $65.4 billion, PACCAR Inc (PCAR) is a global manufacturer and distributor of light, medium, and heavy-duty commercial trucks, serving markets globally. The company operates through three segments: Truck; Parts; and Financial Services, designing and selling trucks under the Kenworth, Peterbilt, and DAF brands, distributing aftermarket parts, and providing financing, leasing, and fleet services through its PacLease network.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and PACCAR fits this criterion perfectly. PACCAR also manufactures industrial winches marketed under the Braden, Carco, and Gearmatic nameplates.
Shares of the Bellevue, Washington-based company have pulled back 8.1% from its 52-week high of $131.88. PACCAR’s shares have risen 11.7% over the past three months, underperforming the State Street Industrial Select Sector SPDR ETF’s (XLI) 13.8% gain over the same time frame.
PCAR stock is up 10.7% on a YTD basis, lagging behind XLI’s 13.1% rise. In the longer term, shares of the truck maker have increased 15.4% over the past 52 weeks, compared to XLI’s 30.6% return over the same time frame.
The stock has been trading above its 50-day and 200-day moving averages since late November 2025.
PACCAR reported strong 2025 financial results on Jan. 27, including annual revenues of $28.44 billion, net income of $2.38 billion, and adjusted net income of $2.64 billion ($5.01 per share) - the fourth highest in its 120-year history. Investor sentiment was further boosted by record performances in PACCAR Parts and Financial Services, with Parts generating $6.87 billion in annual revenue and Financial Services posting $485.4 million in pretax income, alongside $4.42 billion in operating cash flow. However, the stock fell 1.1% on that day.
In comparison, PCAR stock has performed weaker than its rival, Caterpillar Inc. (CAT). CAT stock has surged 26.1% on a YTD basis and 117.5% over the past 52 weeks.
Due to the stock’s underperformance over the past year, analysts remain moderately optimistic on PCAR. The stock has a consensus rating of “Moderate Buy” from the 19 analysts covering the stock, and the mean price target of $125.91 is a premium of 3.9% to current levels.
On the date of publication, Sohini Mondal 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.
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