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Here's Why Ryder System (R) Deserves a Place in Your Portfolio
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Ryder System’s (R - Free Report) efforts to reward its shareholders through dividends and buybacks bode well. Investors always prefer an income-generating stock. Hence, a dividend-paying one is obviously much coveted.
Apart from providing a solid income stream, dividend-paying stocks have fewer chances of experiencing wild price swings. Dividend stocks, like R, are safe bets for creating wealth, as the payouts generally act as a hedge against economic uncertainty like the current scenario.
Lets delve deeper.
Northward Earnings Estimates: The Zacks Consensus Estimate for current-quarter earnings has been revised 10.5% upward over the past 60 days. For 2022, the Zacks Consensus Estimate for earnings has moved 7% north in the same time frame. The favorable estimate revisions reflect the confidence of brokers in the stock.
Given the wealth of information at brokers’ disposal, it is in the best interest of investors to be guided by their expert advice and the direction of their estimate revisions. This is because the path of estimate revisions serves as an important pointer when it comes to ascertaining the stock price.
Upbeat Price Performance: Shares of Ryder have performed well on the bourse, gaining 4.6% over the past year compared with the 0.5% appreciation of its industry.
Image Source: Zacks Investment Research
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.
Bullish Industry Rank: The industry to which Ryder belongs currently has a Zacks Industry Rank of 97 (of 250 plus groups). Such a solid rank places the industry in the top 39% of the Zacks industries. Studies show that 50% of a stock price movement is directly tied to the performance of the industry group that it hails from.
In fact, a mediocre stock in a healthy group is likely to outperform a robust stock in a poor industry. Therefore, taking the industry’s performance into account becomes necessary.
Other Tailwinds: As already mentioned, Ryder’s investor-friendly attitude bodes well. In July 2022, Ryder announced a 7% hike in its quarterly dividend, taking the total to 62 cents per share (annualized $2.48).
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 the first nine months of 2022. Ryder’s 2022 outlook is encouraging. It now expects adjusted earnings per share to be between $15.65 and $15.85 (previous guidance was $14.40-$14.80). Total revenues are predicted to rise 23% in the year.
Other Key Picks
Investors interested in the broader Transportation sector may also consider the following stocks:
Covenant Logistics (CVLG - Free Report) : CVLG offers a portfolio of transportation and logistics services, including asset-based expedited, dedicated and irregular route truckload capacity, besides asset-light warehousing, transportation management and freight brokerage capability.
The gradually improving freight market scenario is a tailwind to Covenant. CVLG’s cost-control efforts are appreciated as well. CVLG currently sports a Zacks Rank #1. The stock has witnessed the Zacks Consensus Estimate for 2022 earnings being revised 10.1% upward over the past 60 days.
Teekay Tankers (TNK - Free Report) : TNK is being well-served by the increase in tanker rates. A gradual ramp-up in economic activities also bodes well. High fuel costs are, however, weighing on the bottom line.
Teekay Tankers currently sports a Zacks Rank #1. TNK’s shares have soared 160% in a year’s time. Over the past 60 days, the Zacks Consensus Estimate for 2022 earnings has moved 87.6% north.
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Here's Why Ryder System (R) Deserves a Place in Your Portfolio
Ryder System’s (R - Free Report) efforts to reward its shareholders through dividends and buybacks bode well. Investors always prefer an income-generating stock. Hence, a dividend-paying one is obviously much coveted.
Apart from providing a solid income stream, dividend-paying stocks have fewer chances of experiencing wild price swings. Dividend stocks, like R, are safe bets for creating wealth, as the payouts generally act as a hedge against economic uncertainty like the current scenario.
Lets delve deeper.
Northward Earnings Estimates: The Zacks Consensus Estimate for current-quarter earnings has been revised 10.5% upward over the past 60 days. For 2022, the Zacks Consensus Estimate for earnings has moved 7% north in the same time frame. The favorable estimate revisions reflect the confidence of brokers in the stock.
Given the wealth of information at brokers’ disposal, it is in the best interest of investors to be guided by their expert advice and the direction of their estimate revisions. This is because the path of estimate revisions serves as an important pointer when it comes to ascertaining the stock price.
Upbeat Price Performance: Shares of Ryder have performed well on the bourse, gaining 4.6% over the past year compared with the 0.5% appreciation of its industry.
Image Source: Zacks Investment Research
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.
Bullish Industry Rank: The industry to which Ryder belongs currently has a Zacks Industry Rank of 97 (of 250 plus groups). Such a solid rank places the industry in the top 39% of the Zacks industries. Studies show that 50% of a stock price movement is directly tied to the performance of the industry group that it hails from.
In fact, a mediocre stock in a healthy group is likely to outperform a robust stock in a poor industry. Therefore, taking the industry’s performance into account becomes necessary.
Other Tailwinds: As already mentioned, Ryder’s investor-friendly attitude bodes well. In July 2022, Ryder announced a 7% hike in its quarterly dividend, taking the total to 62 cents per share (annualized $2.48).
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 the first nine months of 2022. Ryder’s 2022 outlook is encouraging. It now expects adjusted earnings per share to be between $15.65 and $15.85 (previous guidance was $14.40-$14.80). Total revenues are predicted to rise 23% in the year.
Other Key Picks
Investors interested in the broader Transportation sector may also consider the following stocks:
Covenant Logistics (CVLG - Free Report) : CVLG offers a portfolio of transportation and logistics services, including asset-based expedited, dedicated and irregular route truckload capacity, besides asset-light warehousing, transportation management and freight brokerage capability.
The gradually improving freight market scenario is a tailwind to Covenant. CVLG’s cost-control efforts are appreciated as well. CVLG currently sports a Zacks Rank #1. The stock has witnessed the Zacks Consensus Estimate for 2022 earnings being revised 10.1% upward over the past 60 days.
Teekay Tankers (TNK - Free Report) : TNK is being well-served by the increase in tanker rates. A gradual ramp-up in economic activities also bodes well. High fuel costs are, however, weighing on the bottom line.
Teekay Tankers currently sports a Zacks Rank #1. TNK’s shares have soared 160% in a year’s time. Over the past 60 days, the Zacks Consensus Estimate for 2022 earnings has moved 87.6% north.