In 1898, Alexander Winton invented the semitruck and sold the first one a year later.
Today, these large commercial vehicles are instrumental in transporting goods and merchandise across the U.S.
Growth in the commercial vehicle market is now spurred by an explosion in e-commerce sales — making it easier to buy products from all over the country.
From 2020 to 2030, the global commercial vehicles market will grow by 91.1%:
Today’s Power Stock is one of the largest suppliers of commercial trucks in the world: PACCAR Inc. (Nasdaq: PCAR).
PCAR manufactures some of the most popular semitrucks on the market:
- DAF — the XD model was recently awarded International Truck of the Year 2023 by IAA Transportation.
PACCAR Inc. stock scores a “Strong Bullish” 90 out of 100 on our Stock Power Ratings system. We expect it to beat the broader market by 3X in the next 12 months.
PCAR Stock: Great Quality and Excellent Momentum
PACCAR Inc. had a solid third quarter:
- Its net income of $769.4 million set a quarterly record for the company — a 102% increase from the same period a year ago!
- Quarterly revenues were $7.06 billion — up 37.1% from the same quarter last year.
Those numbers show why PCAR earns an 80 on our growth metric.
The company shows even more strength on our quality metric, where it scores an 84.
PCAR’s return on equity is 21.5%. Its industry peers average negative 6.4%.
Its margins (gross, net and operating) are also stronger than its peers.
These numbers tell us PCAR is a terrific growth and quality stock compared to the rest of the transportation equipment manufacturing industry.
PCAR stock is up 21.3% over the last 12 months. It currently trades at a new 52-week high.
Its industry peers averaged an 8.9% decline over the same time.
Since the end of September 2022, the stock has climbed 26.3% … showing the “maximum momentum” we love to see in stocks.
PACCAR Inc. stock scores a 90 overall on our proprietary Stock Power Ratings system.
That means we’re “Strong Bullish.” We expect it to beat the broader market by at least 3X in the next 12 months.
Bottom line: Commercial trucks are still the best way to move goods from one place to another in the U.S.
This market shows incredible strength and strong potential for even more growth.
PCAR is a top candidate for your portfolio as a leader in producing quality commercial trucks.
Stay Tuned: Happy Thanksgiving From the Money & Markets Team
Markets are closed tomorrow for the Thanksgiving holiday. Adam O’Dell, Charles Sizemore and I will share with you what we are most thankful for.
Stay tuned on Friday, where I’ll share all the sordid details on a retail stock to avoid as Black Friday kicks off.
Matt Clark, CMSA®
Research Analyst, Money & Markets