Paccar Leaves Tesla Semi In The Dust As Breakout Nears

While Tesla (TSLA) continues to skid and the first Tesla Semis roll out the door, commercial truck giant Paccar (PCAR) revs up on record Q1 revenue. After Paccar reported a 96% earnings spike on April 25, PCAR stock closed Wednesday’s session 5% below a buy point in an early-stage flat base.

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Information about the production version of the Tesla Semi, an all-electric Class 8 long-hauler, remains scant. But earlier this month, Tesla delivered a new fleet of Tesla Semi trucks to PepsiCo (PEP).

At CES 2022, Paccar exhibited connected and autonomous trucks. The company behind the Kenworth, Peterbilt and DAF nameplates showcased three vehicles.

The battery electric Kenworth T680E was featured, along with its Paccar battery charger. Recently honored as the International Truck of the Year 2022, the DAF XG+ displayed its state-of-the-art connected services. And completing its trio of autonomous commercial trucks,  Paccar showed off the Peterbilt Model 579, equipped with the Aurora self-driving system from Aurora Innovation (AUR).

While Paccar puts these next-gen trucks on display, it continues to fuel big growth with its current fleet of light, medium and heavy-duty trucks.

Paccar Accelerates Earnings And Sales Growth

With heavyweight brands Kenworth, Peterbilt and DAF in its lineup, Paccar generated $28.8 billion in revenue in 2022. In the first quarter of this year, the company delivered 32% sales growth to just over $8 billion. By comparison, Tesla drove companywide sales of just $23.3 billion in Q1 sales.

In the first quarter, Paccar posted accelerating growth in both the top- and bottom-lines. Next quarter, Wall Street forecasts a 47% earnings increase and 32% EPS growth for the full year.

From 2013 to 2022, Paccar produced 1.6 million trucks, including 185,900 last year.

In addition to trucks, Paccar also designs and manufactures advanced diesel engines, provides financial services and distributes truck parts related to its core business.

The truck giant provides products and services worldwide through an extensive dealer network of 2,200 locations.

Paccar Global sells products in more than 100 countries and continues to expand its dealer network in Asia and worldwide. Roughly half of its sales and profits are generated outside the U.S.

Current Demand: PCAR Stock Vs. TSLA Stock

While Paccar did not join TSLA stock on this month’s list of new buys by the best mutual funds, PCAR stock has recently flashed signs of institutional demand.

Paccar sports a B+ Accumulation/Distribution Rating and a 1.5 up/down volume ratio. As its slide continues, Tesla stock metrics have dropped to a D+ Accumulation/Distribution Rating and an 0.8 up/down volume ratio.

The Accumulation/Distribution Rating tracks buying and selling by mutual funds and other large investors over the past 13 weeks. Paccar’s B+ rating indicates heavy buying during that period. The up/down volume ratio covers 50 days of trading, dividing total volume on up days by total volume on down days. A number above 1.0 points to demand, with TSLA stock now below that threshold.

Just before and after reporting Q1 earnings, PCAR stock rose above its 50-day moving average in huge volume. On Wednesday, as the Nasdaq struggled to gain traction, Paccar reversed off its highs to close near the bottom of its price range. Trade was above average, but lower than on the prior three days. PCAR stock closed the session 5% below the 76.82 buy point.

Meanwhile, TSLA stock continued its descent, falling more than 4%, putting it on pace for a fourth straight down week.

Follow Matthew Galgani on Twitter at @IBD_MGalgani.

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