Back to top

Analyst Blog

One of the world’s largest providers of integrated logistics and transportation solutions, Ryder System Inc. (R - Analyst Report) will be providing onsite maintenance for a fleet of 500 trucks and 675 trailers and a full service lease for 205 tractors to Multi Group Logistics, Inc, an Illinois based truckload service provider. Financial terms of the deal remained undisclosed.

Ryder will provide its advanced technology for fleet maintenance at Multi Group Logistics. The company’s Full Service Lease contract involves the turnkey lease project, comprising vehicle configuration, financing, acquisition, maintenance and disposal.

Currently, Ryder operates more than 225 On-Site Fleet Maintenance facilities in the U.S., Puerto Rico and Canada, out of the total service network of 800 facilities. Unlike extended contracts, the company expects the new full-term lease contracts to help it gain market share.

We believe Ryder continues to benefit from strong commercial rental and used vehicle sales backed by a favorable lease rate environment. In addition, strategic acquisitions and increased investments in vehicles provide long-term growth potential for the company.

However, we remain concerned about the challenging economic environment surrounding the company’s operations despite its strong performance. Further, heavy capital expenditures, a distressed cash position, lower demand on tighter truckload market and competition from the likes of AmeraMex International, Inc. are also expected to create significant headwinds for the company.

We, currently, have a long-term Neutral rating on Ryder System. For the short term (1–3 months), the stock retains a Zacks #3 Rank (Hold).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
FELCOR LODG… FCH 10.47 +3.46%
OLD DOMINIO… ODFL 63.48 +1.18%
VASCO DATA… VDSI 13.57 +0.67%
AMEDISYS IN… AMED 20.18 +0.10%
LENOVO GROU… LNVGY 27.07 +0.04%