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    Is PACCAR (PCAR) Undervalued On Its Parts Growth Narrative?

    Simply Wall St·10/02/2026 17:28:22
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    PACCAR (PCAR) has drawn fresh attention after recent trading left the shares down about 10% over the past month and 8% over the past 3 months, which has sharpened the focus on its underlying business performance.

    Zooming out, PACCAR’s share price has eased in recent months, with a 30 day share price return down 10.2% and a 90 day share price return down 8%. However, the 1 year total shareholder return of 13.7% and 3 year total shareholder return of 42.3% point to momentum that has cooled rather than disappeared.

    Scan how PACCAR compares to other industrials under pressure and spot potential breakouts with our hand picked list of solid balance sheet and fundamentals (25 results).

    That pullback now meets a very different picture on paper, with PACCAR trading at a roughly 23% discount to one intrinsic estimate and about 32% below average analyst targets. Is the market being prudently cautious, or is it being overly harsh on the valuation?

    Most Popular Narrative: 24% Undervalued

    Against PACCAR’s last close at $109.94, the most widely followed narrative points to a fair value of $144.80. This frames the recent pullback as a gap between current sentiment and longer term assumptions about the business.

    Expansion of the PACCAR Parts business, supported by record quarterly revenues of US$1.75b in Q2 2026, 29.8% gross margins and management guidance for 3% to 5% sales growth in 2026, points to a growing share of higher margin, recurring revenue that can support net margin and earnings resilience through truck cycles.

    See why 27 investors see PACCAR as 24% undervalued.

    Result: Fair Value of $144.80 (UNDERVALUED)

    Still, the PACCAR story can break if the weaker earnings trend reported through May 2026 persists, or if trimmed Parts and R&D guidance signals softer demand.

    Find out about the key risks to this PACCAR narrative.

    Next Steps

    Mixed on PACCAR after reading this far. Move quickly, check the underlying data and sentiment for yourself, then weigh up the 4 key rewards and 1 important warning sign.

    Looking for more PACCAR style investment ideas?

    You have already done the hard work by digging into PACCAR. Do not stop there when other opportunities might fit your portfolio even better.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.