The American truck manufacturer could upturn anytime soon.

With a well diversified portfolio among several markets all around the world, the truck maker relies on qualitative fundamentals. The company is expected to increase its sales during the ongoing fiscal year of almost 8% for reaching $17.4 million, thus an EBITDA of $2.25 million. On the other hand, its low P/E ratio at only 17 times estimated earnings for 2014 represents an interesting opportunity for investors willing to buy some share on Paccar. Better yields are also previewed in a three-year horizon.

The security, severely penalized during last trading sessions could now upturn and give truck makers hope on better prices. The correction that currently experiences PACCAR drives the equity toward an oversold territory and in the case of a further approach of the USD 59.5 weekly support line could finally represent the stepping stone for a change on the direction. More importantly, the 50-week moving average will also help in keeping prices out of a dramatic hollow strengthening the bullish rally.

According to both fundamental and technical analysis, the timing seems suitable for getting long on PACCAR at its actual trade price (USD 60.6). The target will be the USD 63.8 resistance and a stop-loss order could be placed at USD 58.8, avoiding this way unnecessary risks.