6 Reasons Why Investors Should Buy Ryder (R) Stock Now

·3 min read

Ryder System, Inc. R is benefiting from improving economic and freight market conditions in the United States.

Against this backdrop, let’s look at the factors that make this stock an attractive pick.

What Makes Ryder an Attractive Pick?

An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse over the past year. Shares of Ryder have gained 11.8% over the past year, outperforming the 5.8% surge of the industry it belongs to.

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Solid Rank & VGM Score: Ryder currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.

Northward Estimate Revisions: The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Over the past 90 days, the Zacks Consensus Estimate for Ryder’s third-quarter 2022 earnings has moved up 9.8% year over year to $5.95. For full-year 2022, the company’s earnings have increased 7% year over year.

Positive Earnings Surprise History: Ryder has an impressive earnings surprise history. The company delivered an earnings surprise of 30.1% in the last four quarters, on average.

Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For third-quarter 2022, Ryder’s earnings are expected to register 45.1% growth. For 2022, the company’s earnings are expected to grow at 56.3% year over year.

Growth Factors: Ryder is benefiting from improving economic and freight conditions in the United States. Revenues at all segments grew (on higher rental revenues, new business and favorable pricing) in second-quarter 2022. Ryder’s 2022 outlook is encouraging. It now expects adjusted earnings per share of $14.30-$14.80 (previous view: $13.00-$14.00). Total revenues are predicted to rise 22% in the year. Ryder’s efforts to reward its shareholders bode well. In July, the company announced a 7% dividend hike, taking the total to 62 cents (annualized $2.48).

Other Stocks to Consider

Some other stocks in the broader Zacks Transportation sector that investors can consider are GATX Corporation GATX, Triton International Limited TRTN and Teekay Tankers Ltd. TNK, each carrying a Zacks Rank #2 as well.

GATX Corporation has an expected earnings growth rate of 17.8% for the current year. GATX delivered a trailing four-quarter earnings surprise of 28.9%, on average.

The Zacks Consensus Estimate for GATX’s current-year earnings has improved 2.1% over the past 90 days. Shares of GATX have gained 14.1% over the past year.

Triton has an expected earnings growth rate of 22.4% for the current year. TRTN delivered a trailing four-quarter earnings surprise of 7.5%, on average.

The Zacks Consensus Estimate for TRTN’s current-year earnings has improved 4.2% over the past 90 days. Shares of TRTN have gained 24.5% over the past year.

Teekay Tankers has an expected earnings growth rate of 140.1% for the current year. TNK delivered a trailing four-quarter earnings surprise of 46.1%, on average.

The Zacks Consensus Estimate for TNK’s current-year earnings has improved more than 100% over the past 90 days. Shares of TNK have gained 135.8% over the past year.


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