Why PACCAR, Inc. Shares Will Truck Ahead to $80

Does this analyst make a good case or is it just more noise from Wall Street?

Mar 25, 2014 at 5:30PM

While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking upgrades and downgrades -- just in case their reasoning behind the call makes sense.

What: Shares of PACCAR, Inc. (NASDAQ:PCAR) gained about 1% today after Goldman Sachs upgraded the truck manufacturer from neutral to buy.

So what: Along with the upgrade, analyst Jerry Revich boosted his price target to $80, representing about 20% worth of upside to yesterday's close. So while contrarians might be turned off by the stock's strength in recent months, Revich's call suggests that PACCAR's operating tailwinds still aren't being fully appreciated by Mr. Market. 

Now what: According to Goldman, PACCAR's risk/reward trade-off remains quite attractive at this point. "While investor focus is on new European (30% of PCAR profits) engine regulations, freight fundamentals are overwhelmingly positive entering the sixth quarter of recovery, providing visibility on a sustained truck capex recovery," said Revich. "In US truck (57% of PCAR profits) we acknowledge recently elevated expectations, but believe tight truck supply and a modest freight recovery will sustain newfound trucker pricing discipline and equipment refresh cycle through at least 2015." When you couple those positive trends with PACCAR's still-reasonable forward P/E of 16, it's tough to disagree with Goldman's upgrade. 

Nine rock-solid dividend stocks you can buy today
One of the dirty secrets that few finance professionals will openly admit is the fact that dividend stocks as a group handily outperform their non-dividend-paying brethren. The reasons for this are too numerous to list here, but you can rest assured that it's true. However, knowing this is only half the battle. The other half is identifying which dividend stocks in particular are the best. With this in mind, our top analysts put together a free list of nine high-yielding stocks that should be in every income investor's portfolio. To learn the identity of these stocks instantly and for free, all you have to do is click here now.

Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends and owns shares of PACCAR. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

Something big just happened

I don't know about you, but I always pay attention when one of the best growth investors in the world gives me a stock tip. Motley Fool co-founder David Gardner (whose growth-stock newsletter was rated #1 in the world by The Wall Street Journal)* and his brother, Motley Fool CEO Tom Gardner, just revealed two brand new stock recommendations moments ago. Together, they've tripled the stock market's return over 12+ years. And while timing isn't everything, the history of Tom and David's stock picks shows that it pays to get in early on their ideas.

Click here to be among the first people to hear about David and Tom's newest stock recommendations.

*"Look Who's on Top Now" appeared in The Wall Street Journal which references Hulbert's rankings of the best performing stock picking newsletters over a 5-year period from 2008-2013.

Compare Brokers