PACCAR (PCAR) is back in focus after a fresh round of earnings data highlighted its pattern of topping profit forecasts, putting extra attention on the company ahead of its next report on October 27, 2026.
Recent price action around PACCAR reflects that attention. The share price has slipped roughly 12% over the past 90 days and around 12% over the last month. However, the 1 year total shareholder return of 18.84% and 5 year total shareholder return of 127.14% point to longer term momentum that remains firmly positive.
Scan for other industrials showing similar earnings momentum and constructive sentiment shifts by reviewing our curated list of 29 high quality undervalued stocks.
Earnings beats and long run returns present PACCAR as a high quality operator. After the recent pullback, the key question is whether that strength is already fully reflected in the share price.
Most Popular Narrative: 25% Undervalued
The most followed PACCAR valuation narrative places fair value at $144.80, well above the recent $108.13 close. This frames the recent share price slide as a potential gap between expectations and current pricing.
Expansion of the PACCAR Parts business, supported by record quarterly revenues of US$1.75b in Q2 2026, 29.8% gross margins and management guidance for 3% to 5% sales growth in 2026, points to a growing share of higher margin, recurring revenue that can support net margin and earnings resilience through truck cycles.
See why 28 investors see PACCAR as 25% undervalued.
Result: Fair Value of $144.80 (UNDERVALUED)
Still, this hinges on PACCAR reversing the recent double digit declines in earnings per share and revenue, and on valuation not compressing if current growth assumptions prove too optimistic.
Find out about the key risks to this PACCAR narrative.
Next Steps
Feeling pulled between PACCAR’s recent pullback and its longer term returns? Act while the data is fresh and weigh both sides by reviewing the 4 key rewards and 1 important warning sign.
Looking for more PACCAR sized investment ideas?
Do not stop with PACCAR. Apply the same disciplined mindset and use focused screeners to surface fresh ideas that fit your risk and income targets.
- Target dependable income streams by scanning companies that feature 8 dividend fortresses.
- Prioritize resilience in tougher markets by focusing on businesses drawn from our 31 resilient stocks with low risk scores.
- Hunt for potential future leaders before they are widely followed by reviewing the 20 high quality undiscovered gems.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com