Share of heavy truck maker Paccar Inc. (NASDAQ:PCAR) have risen 45% over the past 12 months. However, as impressive as that is, that's still below the S&P 500, which is up 50% during the same time frame. And with a future price-to-earnings multiple of just 17, the stock is still moderately priced given the potential that it possesses over the long term. Its price-to-earnings-growth ratio of less than one is even more impressive, suggesting that analysts see a lot of value in the company.
Although the semiconductor shortage is impacting the company's business, the company's first-quarter deliveries totaled 42,000, which was a 3% increase from the 40,800 vehicles it delivered in the previous period. But over the long term, the growth opportunities could be significant as Paccar reached a deal earlier this year with self-driving company Aurora to develop autonomous trucks.
And despite there being much hype surrounding Tesla (NASDAQ:TSLA) and other self-driving stocks, shares of Paccar haven't been flying and that could create an opportunity for investors to invest in the business before it takes off.
A big advantage for Paccar is that unlike Tesla, it has a strong track record of profitability. In each of the past four years, the company has posted a profit margin of at least 6%. And with positive free cash flow in each of those years, Paccar is in a great position to fund its own growth. On top of all the positives, the stock also pays investors a dividend that yields around 1.4%, making it an attractive investment to put in any portfolio.
