PACCAR Inc. PCAR is scheduled to release second-quarter 2019 financial results on Jul 23, before market open. In the last reported quarter, the company delivered a positive earnings surprise of 9.04%. In fact, it surpassed estimates in each of the trailing four quarters, at an average of 7.17%.In the past three months, shares of the automotive company have underperformed the industry it belongs to. The stock has declined 2.8% against the industry’s 0.4% growth.Let’s discuss the factors that are likely to make an impact on the upcoming quarterly announcement.Factors to Influence Q2The company witnesses consistent rise in demand for Class 8 truck in the United States and Canada, which is likely to drive its second-quarter results. A robust economy along with strong freight demand is boosting PACCAR’s truck retail sales. This has led to higher transport activity.Moreover, the company’s engagement in manufacturing and development of products enables it to sustain a salient position in the key markets. The company’s efforts to expand its global distribution network are evident through the Trailer Parts Program (TRP).It should be noted that there are several headwinds that can affect the results.The company is facing decline in prices of used trucks due to intemperate supply. High labour and material costs along with rising commodity prices are adding to its woes. Also, exorbitant costs are likely to exert pressure on the company’s margin.Additionally, stiff competition from industry peers in the commercial truck market will likely dent second-quarter results.PACCAR Inc. Price and EPS Surprise PACCAR Inc. price-eps-surprise | PACCAR Inc. Quote What the Zacks Model SaysOur proven model does not conclusively show that the company is likely to beat earnings estimates in the quarter to be reported. This is because a stock needs to have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. This is not the case here as you will see below:Earnings ESP: PACCAR has an Earnings ESP of -0.90%. The Most Accurate Estimate and the Zacks Consensus Estimate are currently pegged at $1.80 and $1.82, respectively. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: The company currently carries a Zacks Rank #3. However, a negative Earnings ESP makes surprise prediction difficult.Note that we caution against stocks with a Zacks Rank #4 or #5 (Sell-rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.Stocks to ConsiderHere are some auto stocks worth considering, which have the right combination of elements to deliver an earnings beat this time around:Group 1 Automotive, Inc GPI has an Earnings ESP of +0.73% and carries a Zacks Rank #3. It is slated to release second-quarter 2019 results on Jul 25. You can see the complete list of today’s Zacks #1 Rank stocks here.Cummins Inc CMI has an Earnings ESP of +3.67% and currently carries a Zacks Rank of 3. It is slated to release second-quarter 2019 results on Jul 30.Penske Automotive Group, Inc PAG has an Earnings ESP of +0.42% and currently carries a Zacks Rank of 3. The company is slated to release second-quarter 2019 results on Jul 30.Looking for Stocks with Skyrocketing Upside?Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.See the pot trades we're targeting>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Penske Automotive Group, Inc. (PAG): Free Stock Analysis Report Group 1 Automotive, Inc. (GPI): Free Stock Analysis Report PACCAR Inc. (PCAR): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report To read this article on Zacks.com click here.