With a market cap of $48.5 billion, PACCAR Inc (PCAR) is a global leader in the design, manufacture, and distribution of light-, medium-, and heavy-duty commercial trucks under the Kenworth, Peterbilt, and DAF nameplates. Its vehicles and services are distributed worldwide across North and South America, Europe, Australia, the Middle East, Africa, and over 100 international markets.

Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and PACCAR  fits this criterion perfectly. Operating through Truck, Parts, and Financial Services segments, PACCAR also produces diesel engines, powertrain components, and aftermarket parts and offers full-service leasing and financing through PacLease.

Shares of the Bellevue, Washington-based company pulled back 22.2% from its 52-week high of $118.81. PACCAR’s shares have fallen 10.2% over the past three months, underperforming the broader S&P 500 Index’s ($SPX) 1.7% rise over the same time frame. 

In the longer term, PCAR stock is down 11.1% on a YTD basis, lagging behind SPX’s marginal gain. Moreover, shares of the truck maker have decreased nearly 16% over the past 52 weeks, compared to the 10.9% return of the SPX over the same time frame.

Despite few fluctuations, the stock has been trading below its 200-day moving average since early March. 

Shares of PACCAR fell 1.9% on Apr. 29 due to a weaker-than-expected Q1 2025 adjusted revenue of $6.9 billion and adjusted EPS of $1.46. Weaker demand in the freight and machinery markets, coupled with an oversupply of equipment, further pressured earnings. Additionally, PACCAR lowered its 2025 Class 8 truck retail sales forecast in the U.S. and Canada to 235,000 units - 265,000 units, citing economic uncertainty and the negative impact of new tariffs.

In contrast, PCAR has performed weaker than its rival, Caterpillar Inc. (CAT), which has returned 5.9% over the past 52 weeks and a decline of 3.8% on a YTD basis. 

Due to the stock’s underperformance over the past year, analysts remain cautious on PCAR. The stock has a consensus rating of “Hold” from the 16 analysts covering the stock, and as of writing, it is trading below the mean price target of $97.36.