Why Paccar Inc. Stock Could Rally 20% презентация

Strong industry fundamentals Strong industry fundamentals

Rising truck deliveries Paccar delivered 41,600 trucks in the second quarter – an 8% increase year over year

What’s fueling demand? Near-record freight tonnage in the U.S. Strong housing and automotive markets Improved demand from Europe – Paccar’s DAF brand reported a 60% jump in Q2 order intake

Paccar’s projections for 2015

Why that’s important The U.S. and Canada, together with Europe, made up 87% of Paccar’s total truck sales in 2014.

Growing market share Growing market share

Substantial growth over the years

Year-to-date market share U.S. and Canadian heavy-duty truck market: 28% Europe heavy-duty market: 15%, up from 13.8% last year

What’s helping Paccar grow Strong brand name Innovative leadership Extensive dealership network Leadership in the natural-gas vehicle market

Why that’s important Trucks move nearly 70% of the freight tonnage in the U.S. A stronger foothold in such an essential industry is a key competitive advantage for Paccar.

On track to a strong growth year On track to a strong growth year

Paccar delivered a solid Q2 Revenue grew 11% year over year Net income surged 40% year over year to hit record high Gross margin climbed to 15.1% from 12.8% a year ago

On track to a strong year

Why that’s important 2014 was a record year for Paccar in terms of revenue, and second-best in terms of net income. The company looks poised to deliver another strong year.

Now that’s certainly a bargain! Analysts estimate Paccar’s earnings to grow a staggering 23% this year, outperforming the industry. For the potential growth, the stock costs only 12 times forward earnings today.