PCAR

The auto sector's third-quarter 2026 earnings season begins October 20 with expected earnings growth of 3.4% and revenue growth of 0.6% year-over-year. Despite affordability pressures, the U.S. auto market has remained resilient, supported by fleet purchases, higher-income buyers, and easier credit access. Four companies—General Motors, PACCAR, Ford, and Rivian Automotive—are identified as likely to outperform consensus estimates based on positive Earnings ESP and Zacks Rank ratings.

As AI stocks experience a selloff, Zacks highlights three non-AI stocks with strong fundamentals and growth potential: Cummins (engine/powertrain manufacturer benefiting from data center boom), Argenx (biotech with blockbuster autoimmune drug Vyvgart expanding to new indications), and PACCAR (commercial truck manufacturer with 87 years of profitability). All three are trading at discounts from recent highs with positive earnings outlooks.

Paccar (PCAR) closed at $110.81, up 2.07% on the day but down 8.17% over the past month. The truck maker is expected to report Q3 2026 earnings on October 27 with EPS projected at $1.61 (up 43.75% YoY) and revenue of $7.56 billion (up 23.87% YoY). The stock carries a Zacks Rank #3 (Hold) with a Forward P/E of 18.38, trading at a premium to its industry average of 15.72.