PACCAR Inc. (PCAR) is a global leader in the design, manufacture, and support of premium trucks, including light-, medium-, and heavy-duty models under the Kenworth, Peterbilt, and DAF nameplates. The company also produces advanced diesel engines, offers financial services, and distributes truck parts. For several years, PACCAR's shares have been positioned in the "Favored" (green) zone of the SIA NASDAQ 100 Index Report, and were added to the SIA Hypothetical 5-stock NASDAQ Model, contributing positively to the model’s stellar performance. However, during the summer, the stock experienced a temporary pullback, falling below its Favored position. As a result, the shares were removed from the model, as they lost relative strength per the model’s rules. In retrospect, the shares likely needed this pause after their rapid rise from $50 to $125 per share, allowing for a healthy period of consolidation. The stock has since found support at $90.48, and following a post-election rally in the auto and trucking sectors, PCAR has moved back up the relative strength matrix towards the 'Favored Zone' of the SIA NASDAQ Report, now positioned at #26. PACCAR’s SMAX rating has also improved, now at 8 out of 10, indicating that PCAR shares are once again outperforming other asset classes.
Using the Point and Figure chart to identify critical levels, PCAR shows support at $106.01 (based on a 3-box reversal) and further support at $97.94, with resistance extrapolated to $145.53 based on vertical count analysis. However, the stock must first overcome the prior resistance at $124.21 (old high).
Turning next to absolute performance, the stock is up 16.43% YTD, largely due to the pullback during the summer, while its 1-month and 3-month returns are 9.47% and 23.40%, respectively. In the attached SIA Automotive Sector Report, PACCAR is ranked #6, up 18 positions in the last quarter. Other major companies in the sector, including General Motors (#5) and Tesla (#4), have also shown strong relative performance. Despite the earlier pullback, PACCAR remains a solid performer in the auto and trucking industries, with improving SIA technical indicators reflecting heightened investor expectations for strong company or sector growth.
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