It's been an eventful week for investors in the trucking industry, and not least for shareholders of Navistar (NYSE: NAV). The stock surged following a well-received set of third-quarter earnings. And almost by stealth, all the leading trucking-sector stocks are now up in the double digits on a year-to-date basis as I write this. Of particular note, engine maker Cummins (NYSE: CMI) and truck manufacturer PACCAR (NASDAQ: PCAR) are now up nearly 25% on the year, and most of the gains were in the last week! What's going on? Were Navistar's results really that good?
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The earnings report was good, with Navistar reporting market share gains and growing sales and earnings in double digits during the quarter. In addition, management confirmed its full-year guidance on sales and adjusted earnings before interest, depreciation, and amortization (EBITDA). Moreover, there was even a slight upgrade to its forecast for full-year Class 8 (heavy duty) industrywide truck production and its core market exposure. For reference, Navistars core markets are Class 8 (heavy trucks and severe service trucks), Class 6 & 7 (medium-duty trucks) and school buses.