PACCAR Inc. (PCAR)

PACCAR stock forecast: buy or sell

PACCAR stock outlook

  • PACCAR stock slided -1.36% to close at $74.43 on the stock market today, after 3 consecutive sessions in positive.
  • PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, and internationally.
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Please read:
The thoughts written in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this paper does not know the particular positions of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are posted for informational motives only

PACCAR stock chart overview

Should I buy PACCAR stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is PCAR stock a buy?

In the current situation of PACCAR there is not any eligible buy setup. This doesn't mean we expect a selloff for PCAR in the next few days, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell PACCAR stock?

When you are a novel trader and you own a stock with some profit, it's really hard to decide the best moment to sell and get your benefits. Trading strategies prevent us from making impetuous decisions based on our moods or the noise surrounding the market. Our trading system selects very simple strategies to guide us on when is a good time to sell our shares. Be aware that these strategies are not intended for selling short PACCAR stock

A guiding principle is that you should never hold an operation that results in greater losses than those expected upon purchase. The timing to sell shares should always be determined by the stop-loss (automatic or manual)

Is it time to sell PACCAR stock?

Currently, PACCAR stock doesn't match any of our preferred sell setups, so if you own PACCAR shares and your operation is in profit probably is not time to sell now

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Analysts' recommendations to buy or sell PACCAR stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, 3 ratings were published for PACCAR. General sentiment is bullish, with 3 out of 3 publishing optimistic forecasts

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PACCAR ratings

Brokerage firmRating
Jun 18th, 2020
Citigroup Strong buy
Jun 30th, 2020
Deutsche Bank Strong buy
Jul 1st, 2020
JPMorgan Chase & Co. Buy

Technical analysis

SMAs overview

A favorite tool of many traders are the moving averages, that easily show market momentum. A moving average is the average price of a stock over a set period of time. Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages. Learn more about Moving Averages from sources like Wikipedia and Investopedia

Supports and resistances

Technical analysts use supports and resistances as a way to identify price points in the stock price action that tend to behave as barriers, preventing the price of a stock to move in certain direction. Supports are levels where the price may find support as it falls. Price is more likely to "bounce off" this level rather than break through it. Nevertheless, if the price breaks down this level, it will probably continue falling until meeting another support level. On the contrary, resistances are where the price may find resistance as it moves up. Again, this means that the price is more likely to "bounce off" at this level, and if it finally ruptures this level, the price will rally more easily until it approaches the next resistance

The current resistance levels are:

  • R1: $77.41 (4% above)
  • R2: $77.81 (4.54% above)
  • R3: $79.48 (6.78% above)
  • The current support levels are:

  • S1: $73.21 (-1.64% below)
  • S2: $71.56 (-3.86% below)
  • S3: $70.89 (-4.76% below)
  • Bollinger bands

    This is an indicator that was developed in the 1980s by John Bollinger. Fundamentally, the Bollinger Bands are bands that fluctuate around a centralmoving averagediffering in distance from the bottom to the top depending on market volatility. They are usually drawn by an offset of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    The price is trading near to the upper Bollinger band, indicating some level of overbought in recent sessions. This is not a bearish indicator, as price can move in these levels for many days and weeks

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. It is intended to chart the current and past strength or weakness of a stock or market based on the closing prices of a recent trading period. Like other oscillation indicators, the RSI moves in a range from 0% to 100%. The relative strength indicator is one of the best known and most widely used indicators, and it was invented by J. Welles Wilder in the late 1970s

    The RSI dropped below the overbought level of 70 in mid-June after just crossing to the overbough zone for 1 day (weak signal). The RSI value today was 51.28. Since RSI lost the overbought zone, PACCAR price tanked a 5.73%

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    Earnings and financials

    PACCAR had the shareholders call and released the Q1 report in mid-April. PACCAR underperformed analysts estimates and reported earnings of %s a share of $1.03, that is a -14.88% worse than the initial estimates of $1.21. Reported sales were $4.8 billion versus estimates of $5.0 billion.

    Compared to the same quarter last year, EPS was $1.81, so current EPS is a loss of -43.09%. Sales sank a -22.15% on an annualized basis in the first-quarter, from $6.1B to $4.8B last quarter.

    PACCAR will host the quarterly earnings call on Tuesday next week. Expected earnings of %s a share for this quarter is $0.35. Earnings reporting day has a more than usual risk for stock investors as the information disclosed can jump up or down the price with very low volume and not honouring your buy or stop-loss orders. You can probably obtain more details about the earnings call and the earnings reports on the Investor Relations section of its website: http://www.paccar.com.

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