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5 Reasons Why Investors Should Bet on Ryder (R) Stock Now
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Ryder System, Inc. (R - Free Report) is benefiting from strong rental demand and favorable pricing. The company’s measures to reward its shareholders are encouraging.
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 six months. Shares of Ryder have gained 34.1% over the past six months, outperforming the 22.1% rise of the industry it belongs to.
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.
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 first-quarter 2023 earnings has moved up 1% year over year. For 2023 and 2024, the company’s earnings are expected to increase 2.9% and 18.2%, year over year, respectively.
Positive Earnings Surprise History: Ryder has an impressive earnings surprise history. The company delivered an earnings surprise of 21.81% in the last four quarters, on average.
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 the fourth quarter of 2022. Ryder’s 2023 outlook is encouraging. For 2023, Ryder expects total revenues and operating revenues to increase 2% and 4%, respectively.
Adjusted EPS is estimated to be between $11.05 and $12.05. Ryder’s efforts to reward its shareholders bode well. In February 2022, the company entered a $300-million accelerated share buyback program. In July 2022, Ryder announced a 7% hike in its quarterly dividend, taking the total to 62 cents per share (annualized $2.48).
In the fourth quarter of 2022, Ryder repurchased 2 million shares for $179 million under its completed 2021 Discretionary program. Additionally, the company repurchased 0.9 million shares for $78 million under its 2021 Anti-Dilutive program. In February 2023, Ryder’s board approved a new 2-million share discretionary repurchase program.
Other Stocks to Consider
Some other top-ranked stocks from the broader Zacks Transportation sector are Copa Holdings, S.A. (CPA - Free Report) , Alaska Air Group, Inc. (ALK - Free Report) and American Airlines (AAL - Free Report) . Copa Holdings presently sports a Zacks Rank #1, while Alaska Air and American Airlines currently carry a Zacks Rank #2.
Copa Holdings has an expected earnings growth rate of 33.66% for the current year. CPA delivered a trailing four-quarter earnings surprise of 33.35%, on average.
The Zacks Consensus Estimate for CPA’s current-year earnings has improved 12.65% over the past 90 days. Shares of CPA have soared 7.2% over the past six months.
Alaska Air has an expected earnings growth rate of 32.64% for the current year. ALK delivered a trailing four-quarter earnings surprise of 8.98%, on average.
The Zacks Consensus Estimate for ALK’s current-year earnings has improved 11.4% over the past 90 days. Shares of ALK have soared 4.7% over the past six months.
AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
The Zacks Consensus Estimate for AAL’s current-year earnings has improved 40.5% over the past 90 days. Shares of AAL have gained 13% over the past six months.
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5 Reasons Why Investors Should Bet on Ryder (R) Stock Now
Ryder System, Inc. (R - Free Report) is benefiting from strong rental demand and favorable pricing. The company’s measures to reward its shareholders are encouraging.
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 six months. Shares of Ryder have gained 34.1% over the past six months, outperforming the 22.1% rise of the industry it belongs to.
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.
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 first-quarter 2023 earnings has moved up 1% year over year. For 2023 and 2024, the company’s earnings are expected to increase 2.9% and 18.2%, year over year, respectively.
Positive Earnings Surprise History: Ryder has an impressive earnings surprise history. The company delivered an earnings surprise of 21.81% in the last four quarters, on average.
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 the fourth quarter of 2022. Ryder’s 2023 outlook is encouraging. For 2023, Ryder expects total revenues and operating revenues to increase 2% and 4%, respectively.
Adjusted EPS is estimated to be between $11.05 and $12.05. Ryder’s efforts to reward its shareholders bode well. In February 2022, the company entered a $300-million accelerated share buyback program. In July 2022, Ryder announced a 7% hike in its quarterly dividend, taking the total to 62 cents per share (annualized $2.48).
In the fourth quarter of 2022, Ryder repurchased 2 million shares for $179 million under its completed 2021 Discretionary program. Additionally, the company repurchased 0.9 million shares for $78 million under its 2021 Anti-Dilutive program. In February 2023, Ryder’s board approved a new 2-million share discretionary repurchase program.
Other Stocks to Consider
Some other top-ranked stocks from the broader Zacks Transportation sector are Copa Holdings, S.A. (CPA - Free Report) , Alaska Air Group, Inc. (ALK - Free Report) and American Airlines (AAL - Free Report) . Copa Holdings presently sports a Zacks Rank #1, while Alaska Air and American Airlines currently carry a Zacks Rank #2.
Copa Holdings has an expected earnings growth rate of 33.66% for the current year. CPA delivered a trailing four-quarter earnings surprise of 33.35%, on average.
The Zacks Consensus Estimate for CPA’s current-year earnings has improved 12.65% over the past 90 days. Shares of CPA have soared 7.2% over the past six months.
Alaska Air has an expected earnings growth rate of 32.64% for the current year. ALK delivered a trailing four-quarter earnings surprise of 8.98%, on average.
The Zacks Consensus Estimate for ALK’s current-year earnings has improved 11.4% over the past 90 days. Shares of ALK have soared 4.7% over the past six months.
AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
The Zacks Consensus Estimate for AAL’s current-year earnings has improved 40.5% over the past 90 days. Shares of AAL have gained 13% over the past six months.