VOLAF - PACCAR: Too Far Too Fast - Time To Sell

2024-05-08 08:44:02 ET

Summary

• PACCAR's shares have risen too far too fast.
• PACCAR will require significant amounts of capital to transition to net zero emissions.
• This transition will disrupt PACCAR's profitable aftermarket parts business, and it may delay fleet replacements.
• The recent 15% decrease in PACCAR's shares should be treated as the start of a long-term period of underperformance, and not as a buying opportunity.

I. PACCAR Has Had A Heck Of A Run

PACCAR ( PCAR ) shareholders have done spectacularly well since the turn of the century, both in absolute terms, and when compared to inflation adjusted Real GDP, Nominal GDP, and to the overall stock market as measured by the S&P 500 ( SPX )....

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