10 Best Heavy Equipment and Industrial Machinery Stocks to Buy

5) PACCAR Inc (NASDAQ:PCAR)

Number of Hedge Fund Holders: 30

PACCAR Inc (NASDAQ:PCAR) designs, manufactures and distributes light, medium, and heavy-duty commercial trucks.

Wall Street analysts believe that PACCAR Inc (NASDAQ: PCAR)’s growth prospects are expected to be fueled by an increase in emission pre-buy activities. An emission pre-buy is a phenomenon in which truck buyers accelerate purchases of vehicles ahead of the implementation of stricter emission regulations. The majority of PACCAR Inc (NASDAQ:PCAR)’s trucks are equipped with engines from Cummins, placing it to potentially capitalize on regulatory changes.

Cummins is a leader in developing engines that meet or exceed stringent global standards. By equipping trucks with Cummins engines, PACCAR Inc (NASDAQ:PCAR) ensures that its vehicles remain compliant. Also, PACCAR Inc (NASDAQ:PCAR) made some significant moves. It announced the sale of its subsidiary, PACCAR Winch Inc., to a wholly-owned subsidiary of Black Phoenix Group. This move forms part of the company’s ongoing efforts to optimize its portfolio and enhance shareholder value. This transaction aligns with the broader industry trend of companies emphasizing their core competencies and growth opportunities.

PACCAR Inc (NASDAQ:PCAR)’s core areas include trucks, parts, and emerging technologies such as electric and autonomous vehicles. Madison Investments, an investment advisor, released its Q3 2024 investor letter. Here is what the fund said:

“The bottom five detractors for the quarter were Dollar Tree, MKS Instruments, PACCAR Inc (NASDAQ:PCAR), Copart, and Amphenol. After initially holding up well against declining freight rates and a softening economic backdrop, sales at truck manufacturer PACCAR have begun to weaken. We think the company’s high-margin, stable aftermarket parts division will offer some support through the current cyclical downturn.”