The resumption of economic and industrial activities is driving an increase in demand for heavy-duty trucks for transporting raw materials. So, we believe popular truck manufacturing stocks Paccar (PCAR) and Tata Motors (NYSE:TTM) are well-positioned to benefit from the rising demand. But let’s find out which of these stocks is a better buy now.PACCAR Inc. (NASDAQ:PCAR) Bloomfield Hills, Mich. and Tata Motors Limited (TTM) are budding players in the international truck manufacturing space. PCAR designs and manufactures high-quality light-, medium- and heavy-duty trucks, advanced diesel engines, and related aftermarket parts. TTM is an India-based multinational automotive corporation engaged mainly in producing various types of commercial and passenger vehicles. Both companies provide information technology and vehicle financing services.
Cheaper borrowing rates and growing demand for products are incentivizing industries to ramp up production amid the easing of pandemic restrictions, thus creating a high demand for raw materials worldwide. This, in turn, is fueling the demand for heavy-duty trucks for interstate cargo transportation. The heavy-duty trucks market is expected to grow at a 7.3% CAGR to hit $280.54 billion by 2026. Based on their efficient truck portfolios and finance services, both PCAR and TTM are likely to benefit from the industry tailwinds.
But while PCAR lost 5.5% in price over the past three months, TTM surged 3.6%. In terms of their past six months’ performance, TTM is a clear winner with 1.6% gains versus PCAR’s negative returns. But, which of these stocks is a better pick now? Let’s find out.