Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
Washington-based Tech firm PACCAR, Inc.(NASDAQ: PCAR) facilitates the design and manufacturing of light, medium, and heavy-duty trucks. Along with providing trucks, the company also offers financing, and leasing products and services to customers and dealers.
The Record Financial Performance
PACCAR reported noteworthy fundamental performance for the quarter. Sales numbers and incomes added up to $8.70 billion and a record net profit of $1.23 billion. The gross margins came near a level of 19%. The global truck deliveries reached 50,100 units. Counting this quarter, the compound rate in the past 4 quarters is a staggering 5.3% per quarter.
In addition to the main business, PACCAR Parts’ sales numbers reached $1.58 billion, with a pretax profit of $412 million. Another segment, PACCAR Financial Services likewise came up with a pretax profit of $133 million. The company generated $1.34 billion in cash from operations and its stockholders’ equity stands at $16.0 billion.
What Did the VP Say?
According to Mike Dozier, PACCAR executive vice president, the excellent financial results were due to customers replacing older vehicles with new fuel-efficient Kenworth and Peterbilt trucks. The infrastructure spending in the U.S. has also positively impacted Kenworth and Peterbilt’s truck business.
Technical Analysis and Prediction of the PCAR Stock Price
At the press time, the PCAR stock price is trading at $84, just near the 50-day EMA price of $85. The bulls have reclaimed the immediate support level of $84 and are currently rising towards the range of $87. Both of these pivot points have held firm since July 2023. A breakout seems hard unless a big move arrives.
The Relative strength index (RSI) has just come above its oversold zone of 36 back on 23 October. However, since the bulls took support and rose, the RSI has risen to its neutral zone of 51. The Simple moving average line (SMA) is at 48. If the current bullish strength continues, the RSI will make a bullish crossover with its SMA.
The PCAR stock price prediction will be bullish till the stock reaches its resistance. As the RSI and EMAs have given a bullish signal, a bullish trend can arise.
Conclusion
PACCAR, Inc. (NASDAQ: PCAR) designs and manufactures light, medium, and heavy-duty trucks. The company has posted optimum financial reports, which may give the confidence to the investors to push the price forward. Currently, the stock is in a sideways trend, but the prediction is bullish.
Technical Levels
- Support: $81, and $76
- Resistance: $87.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks or related indexes comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/10/25/pcar-stock-price-re-entry-after-reclaim-is-it-the-time-to-buy/