Every time the stock market corrects, some stocks get hammered despite their strong fundamentals. Truck manufacturer Paccar is one such company that has seen its stock shed nearly 11% since August, declining at a faster pace than the broader market.
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This slide in Paccar's shares seems unwarranted when you consider that it was among the few industrial stocks to deliver a blowout second quarter when headwinds like currency fluctuations and weak international markets have hit the industry hard. That may explain why some analysts have turned bullish on Paccar -- like Piper Jaffray, which recently upgraded the stock to overweight with a price objective of $68, representing nearly 20% upside from its current price.
I strongly agree with Piper Jaffray here. While there are many reasons to like Paccar, I've highlighted in the slideshow below the three most important factors that could help the stock bounce back. Watch it now to know what makes Paccar such an excellent bargain at its current price.
The article Why Paccar Inc. Stock Could Rally 20% originally appeared on Fool.com.
Neha Chamaria has no position in any stocks mentioned. The Motley Fool owns and recommends 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.
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