Paccar: Parts Strength Makes The Difference

PACCAR is a premium commercial vehicle company with rising production, improving margins, and a robust balance sheet, justifying a valuation premium. Truck deliveries are increasing, margins are recovering, and the parts business is driving stable, high-quality earnings growth. PCAR trades at a premium to Volvo but is reasonably valued against Cummins, with consensus expecting nearly 38% EPS growth from 2026 to 2028. I rate PCAR a cautious buy, supported by a strong backlog, a resilient earnings base, and proven execution through cycles.

PACCAR Inc. (PCAR) is one of the strongest businesses in the commercial vehicle industry, but the stock is not especially cheap. The company owns premium truck brands, has a large and highly profitable parts operation, carries