Valued at a market cap of $48.1 billion, PACCAR Inc. (PCAR) designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks internationally. The company operates through three segments: Truck, Parts, and Financial Services. 

Shares of PACCAR have lagged behind the broader market over the past 52 weeks. PCAR has dropped 14.5% over this period, while the broader S&P 500 Index ($SPX) has gained 9.2%. Moreover, shares of PCAR are down nearly 12% on a YTD basis, compared to SPX’s 3.7% decline.

Zooming in further, PCAR has also underperformed the Industrial Select Sector SPDR Fund’s (XLI) 9.4% rise over the past 52 weeks and nearly 3.2% return on a YTD basis.

Shares of PACCAR fell 1.9% after it released its Q1 2025 earnings on Apr. 29. Quarterly revenue declined 14.9% year-over-year to $7.4 billion. However, revenue from the Financial Services segment rose 3.7% to $528 million, supported by a strong portfolio and efficient credit and loan processing. Adjusted EPS came in at $1.46, which did not meet the Wall Street expectations of $1.57.

For the current fiscal year, ending in December 2025, analysts expect PCAR's adjusted EPS to decline 24.4% year-over-year to $5.97. The company's earnings surprise history is mixed. It beat the consensus estimates in one of the past four quarters while missing on three other occasions. 

Among the 16 analysts covering the stock, the consensus rating is a “Hold.” That’s based on four “Strong Buy” ratings, 10 “Holds,” and two “Strong Sells.”

This configuration is less bullish than three months ago, with six “Strong Buy” ratings on the stock.

On May 8, RBC Capital Markets lowered PCAR's price target to $97 while maintaining a “Sector Perform” rating.

As of writing, PACCAR is trading below the mean price target of $99.28. The Street-high target of $127 suggests a staggering 38.7% upside potential.