Ryder System Inc. (R - Free Report) – one of the world's largest providers of integrated logistics and transportation solutions – will be delivering three new refrigerated trucks to Mama Bosso under a Full Service Lease agreement.
The deal will help Mama Bosso to deliver its popular frozen pizza to grocery stores in the Quad Cities region in a timely manner.
Mama Bosso owns limited number of trucks, thus outsourcing its fleet operations will help the company to improve its core business operations.
During the second quarter of 2013, Ryder reported mixed financial results. The bottom line outpaced the Zacks Consensus Estimate but the top line missed the same. Moreover, the Fleet Management Solutions segment, which contributes the maximum revenues, grew 2% year over year to $1,121 million in the second quarter buoyed by 12% and 4% increase in Contract-related maintenance revenues and Full Service lease revenues, respectively.
Last month, Ryder opened a new maintenance and rental facility in Anchorage, Alaska. The unit represents the company’s first such operating location in the area. The service outlet provides maintenance and rental services to commercial vehicles. We believe that increased infrastructural support will not only attract more customers but it also bode well for the long-term growth of the company.
Hence, we believe Ryder’s series of contract wins, coupled with a favorable lease rate environment, will deliver strong results for the company going forward. Moreover, strategic acquisitions and increased investments in vehicles provide long-term growth potential for Ryder.
Ryder currently carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Other stocks worth investing in this sector include AMERCO (UHAL - Free Report) , Trinity Industries Inc. (TRN - Free Report) and American Railcar Industries, Inc. (ARII - Free Report) . AMERCO has a Zacks Rank #1 (Strong Buy) while Trinity sports a Zacks Rank #2 (Buy). American Railcar carries a Zacks Rank #3 (Hold).