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Ryder (R) Gains on Cost-Cutting Measures Amid Coronavirus
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We recently issued an updated report on Ryder System, Inc. (R - Free Report) .
Ryder’s measures to reward shareholders through dividends despite COVID-19 woes are impressive. Notably, the company paid out dividends worth $89.7 million in the first nine months of 2020, up 3% year over year. In the December-end quarter, Ryder expects to resume its anti-dilutive share repurchase program that was temporarily paused due to the coronavirus pandemic.
The company’s cost-cutting measures to combat coronavirus-woes are also encouraging. Temporary furloughs of employees, reduced discretionary spending and low medical expenses led to cost savings of $50 million in the first nine months of 2020. Additionally, the company expects annual savings of $30 million in the current year from its multi-year maintenance initiative.
However, Ryder is seeing significant decline in rental demand due to reduced business activity stemming from the coronavirus pandemic. Used-vehicle market conditions continue to be weak. The company anticipates a delay in recovery of used-vehicle pricing due to the effects of the coronavirus pandemic.
Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, FedEx and Herc Holdings are pegged at 15%, 12% and 6.5%, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time. See 8 breakthrough stocks now>>
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Ryder (R) Gains on Cost-Cutting Measures Amid Coronavirus
We recently issued an updated report on Ryder System, Inc. (R - Free Report) .
Ryder’s measures to reward shareholders through dividends despite COVID-19 woes are impressive. Notably, the company paid out dividends worth $89.7 million in the first nine months of 2020, up 3% year over year. In the December-end quarter, Ryder expects to resume its anti-dilutive share repurchase program that was temporarily paused due to the coronavirus pandemic.
The company’s cost-cutting measures to combat coronavirus-woes are also encouraging. Temporary furloughs of employees, reduced discretionary spending and low medical expenses led to cost savings of $50 million in the first nine months of 2020. Additionally, the company expects annual savings of $30 million in the current year from its multi-year maintenance initiative.
However, Ryder is seeing significant decline in rental demand due to reduced business activity stemming from the coronavirus pandemic. Used-vehicle market conditions continue to be weak. The company anticipates a delay in recovery of used-vehicle pricing due to the effects of the coronavirus pandemic.
Zacks Rank & Other Stocks to Consider
Ryder currently carries a Zacks Rank #2 (Buy).
Investors interested in the Zacks Transportation sector may also consider Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , FedEx Corporation (FDX - Free Report) and Herc Holdings (HRI - Free Report) . All the stocks sport a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, FedEx and Herc Holdings are pegged at 15%, 12% and 6.5%, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>