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Heavy Tariff Woes for PACCAR: Market Braces for Impact

Jack KelloggAvatar
Written by Jack Kellogg Reviewed by Ellis Hobbs Fact-checked by Matt Monaco
Updated 9/27/2025, 12:16 pm ET 9/27/2025, 12:16 pm ET | 5 min 5 min read
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PACCAR Inc.’s stock trading up by 4.7 percent, fueled by robust earnings exceeding market expectations.

Industrials industry expert:

Analyst sentiment – positive

PACCAR Inc (PCAR) currently holds a robust market position within the Industrials sector. With a revenue of $33.7 billion and a revenue per share of $64.11, it sustains an impressive gross margin of 21.2%. The firm’s EBIT margin is 12.8%, while its profit margin (cont.) stands at 9.88%, signaling strong operational efficiency. The PE ratio of 16.39 suggests the stock is reasonably valued, supported by a solid return on capital LTM of 16.77% and a return on equity LTM of 16.77%. The total debt to equity is at zero, indicating no leverage-related risks. PACCAR demonstrates resilience, but with a noticeable cash flow depletion due to substantial investment activities. Despite negatives in cash flow from investing (-$617.5 million), its free cash flow remains positive at $444.5 million, showing healthy financial fundamentals.

The recent technical analysis of PACCAR shows consolidation with key resistance at $101 and support around $95. Weekly price patterns indicate a bullish reversal towards the end of the analyzed weeks, with strong buying interest noted on high-volume days, especially around September 25. A symmetrical triangle breakout appears evident, suggesting potential upward momentum past the $101 mark. Traders should consider buying if the price sustains above $101 with increasing volumes, while setting stop-losses slightly below $100 to mitigate downside risks. Moving averages indicate a neutral to bullish trend. The price levels suggest room for potential gains, attracting short-term traders.

Recent catalysts include the dividend declaration and tariff news. PACCAR’s consistent dividend payout of $0.33/share reaffirms stability in shareholder returns. The 25% tariff on truck imports supports domestic manufacturing competitiveness, where PACCAR’s brand, Peterbilt, will likely benefit. PACCAR’s prospect is positive against Industrial Machinery benchmarks, aligning with improved demand edges. Resistance remains near $101, with targets set beyond this, varying from $104 to $107 if uptrend sustains. Overall, it appears positioned for growth, benefitting from industry trends and favorable policy shifts.

  • Following Trump’s tariff announcement, PACCAR’s stock showed a slight decrease, indicating investor apprehension regarding the potential impact on the company’s operations and bottom line as they navigate these geopolitical challenges.

  • Despite market turbulence, PACCAR maintains its quarterly dividend at $0.33 per share, reflecting confidence in their operational stability and their ongoing expansion in advanced powertrains and financial services, reinforcing their industry leadership.

  • The company’s financials show robust performance despite tariff threats, as highlighted by their steady dividends and solid earnings from continuing operations, pointing towards strategic resilience.

Candlestick Chart

Weekly Update Sep 22 – Sep 26, 2025: On Saturday, September 27, 2025 PACCAR Inc. stock [NASDAQ: PCAR] is trending up by 4.7%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

PACCAR Inc’s recent financial performance exhibits cautious optimism amid external pressures. The company declared a dividend of $0.33 per share, showcasing their robust capacity to return value to shareholders. The stock closed at $101.06, showing resilience in the face of a minor decrease previously, with a small drop of $0.13 that attributes to uncertain market conditions.

Their earnings report indicates revenue reaching nearly $33.67 billion, reflecting a growth trajectory despite macroeconomic challenges. Profit margins are maintained with an EBIT margin at 12.8% and a net income of $723.8 million from continuing operations, demonstrating their fiscal prudence and efficiency. The PE ratio at 16.39 suggests fair valuation relative to earnings, while a priceto-book ratio of 2.65 highlights the intrinsic asset value appreciation.

More Breaking News

In terms of asset management, PACCAR reports a steady asset turnover at 0.7, emphasizing efficient utilization of their inventory and receivables despite a high leverage ratio of 2.3, which could raise some caution in an uncertain economic climate.

Conclusion

In conclusion, PACCAR Inc. remains an industry stalwart with a stable outlook in the face of new tariffs. The company’s sound financial health, as evidenced by its sustained dividends and strong margins, positions it to manage the headwinds while making strategic investments in technology and product development. Traders should monitor ongoing geopolitical developments and market reactions closely, as these will shape the company’s path forward in an evolving global trade environment. As millionaire penny stock trader and teacher Tim Sykes says, “It’s not about how much money you make; it’s about how much money you keep.” This quote underscores the importance of PACCAR’s cohesive financial strategy, which will be the cornerstone in weathering this period, extending its leadership in the heavy truck manufacturing sector despite external challenges.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Jack Kellogg

He teaches webinars on Tim Sykes’ Trading Challenge He became Tim’s youngest millionaire student in 2020. Now he’s second on the Trading Challenge leaderboard with $12.9 million in career earnings. He’s a master of the 7-Step Pennystocking Framework. Jack is one of a rare breed of traders to profitably trade the entire penny stock framework.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”