In a recent development that may pique the interest of investors, PACCAR Inc (PCAR) has received an “Overweight” rating from Tami Zakaria of JP Morgan on December 19, 2025. This upgrade not only reflects confidence in the company’s prospect but also identifies a substantial upside potential, with a new price target set at $133, suggesting that the stock is undervalued at its current price of $111.57.
Recent Price Action
PACCAR’s shares have shown moderate resilience lately, trading around $111.57—a change of just $0.07, or 0.06%, in the last session. This slight increase comes as the stock operates near its 52-week low of $33.48, though it remains approximately $2.11 shy of its 52-week high. Trading volume has been robust as well, with nearly 9.17 million shares changing hands compared to an average volume of about 3.24 million, reflecting heightened investor engagement. The stock’s market capitalization stands at approximately $58.60 billion, with a beta of 1.017, indicating a near-average level of volatility relative to market movements.
Historical Performance
Over the past month, PACCAR has posted a commendable performance, appreciating by 15.02%. This trend is even more pronounced over the last three months, where the stock has risen by 12.18%. However, the broader picture reveals a more tempered annual performance, with a slight decline of 1.27% over the past year. Notably, the stock has displayed a weekly volatility of 1.97%, indicative of stable price movements in the short term compared to a monthly volatility of 2.41%, suggesting slightly increased fluctuations over a longer outlook.
Earnings Analysis
Turning to PACCAR’s most recent earnings report, the company posted an earnings per share (EPS) of $1.12, which fell short of the estimated EPS of $1.15, resulting in a surprise factor of -2.61%. This contrasts with the previous quarter, where PACCAR reported an EPS of $1.37 against expectations of $1.29, leading to an impressive positive surprise of 6.20%. Taken together, these figures indicate some inconsistency in earnings predictability, an area investors will closely monitor moving forward.
Analyst Consensus View
Analyst sentiments towards PACCAR reflect a cautious optimism. The latest consensus following the upgrade consists of a total of eight ratings—comprised of one “Buy,” seven “Hold,” and no “Sell” recommendations. The average price target stands at $109.13, signaling a slight upside from the current trading price, while JP Morgan’s elevated price target of $133 indicates a significant upside potential. The range among analysts varies from a low of $97 to the original projection of $133, suggesting divergent views on the company’s near-term trajectory.
Stock Grading and Fundamental View
The Stocks Telegraph Grading Score for PACCAR is at 55, offering a solid indication of the company’s underlying health and investment appeal. This score reflects a balance of risk and return qualities that may attract risk-tolerant investors, especially those looking for stability within the industrial sector. The interplay of strong historical performance in a recovering market suggests that PACCAR is well-positioned amidst competitor dynamics.
Conclusion
For investors eyeing PACCAR Inc, the upgrade from JP Morgan highlights the stock’s potential as a medium- to long-term investment. Given the current valuation and robust upside target, it may particularly appeal to growth-oriented investors. However, the recent earnings miss should remind investors of the inherent risks, underscoring the importance of closely monitoring quarterly results. As the broader market evolves, PACCAR is a company worth watching—especially for those seeking exposure within the commercial vehicles framework.