We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
5 Reasons Why Investors Should Bet on Ryder (R) Stock Now
Read MoreHide Full Article
Ryder System, Inc.(R - Free Report) is benefiting from its shareholder-friendly initiatives. The 2023 earnings guidance looks 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 year to date. Shares of Ryder have gained 19.1% so far this year compared with the 17.6% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Solid Rank & VGM Score: Ryder currently sports a Zacks Rank #1 (Strong 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 or 2 (Buy), offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment.
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 third-quarter 2023 earnings has moved up 7.3% year over year. For 2023 and 2024, the company’s earnings are expected to increase 7.8% and 4.8%, year over year, respectively.
Positive Earnings Surprise History: Ryder has an impressive earnings surprise history. The company has surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark once). The average beat is 11.2%.
Growth Factors:Ryder’s 2023 outlook is encouraging. Adjusted earnings per share (EPS) for the year is now estimated to be between $12.20 and $12.70 (prior view: $11.30-$12.05). For 2023, management anticipates operating revenues to increase 2%. Net cash from operating activities is projected to be $2.5 billion (prior view: $2.4 billion). Adjusted ROE (return on equity) is still suggested in the 17-19% band (prior view: 16-18%).
Ryder’s measures to reward its shareholders through dividends and share buybacks are appreciative. In July 2023, Ryder announced a 14.5% hike in its quarterly dividend, taking the total to 71 cents per share (annualized $2.84). The company is also active on the buyback front. In February 2023, Ryder’s board approved a new 2-million share discretionary repurchase program. Management is now authorized to buyback up to 2 million shares of common stock at its discretion from Feb 10, 2023, to Feb 10, 2025 (two years).
United Airlines is seeing a steady recovery in domestic and international air-travel demand. Owing to this, UAL expects revenues for the September quarter to grow 10-13% year over year. Our third-quarter total revenue estimate hints at an increase of 11.4% year over year.
For third-quarter 2023, United Airlines anticipates capacity to improve 16% from the year-ago reported figure. The Zacks Consensus Estimate for UAL’s current-year earnings has been revised 19.7% upward over the past 60 days.
Improved air-travel demand, particularly on the domestic front, is aiding Delta. Due to the positive, DAL reported better-than-expected EPS and revenues in the second quarter of 2023. For third-quarter 2023, the company expects EPS in the range of $2.2-$2.5.
Management also raised its EPS outlook for the current year. The company now anticipates 2023 EPS (on an adjusted basis) in the band of $6-$7 (previous view: $6 per share). The Zacks Consensus Estimate for DAL’s current-year earnings has been revised 23.5% upward over the past 60 days.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
5 Reasons Why Investors Should Bet on Ryder (R) Stock Now
Ryder System, Inc.(R - Free Report) is benefiting from its shareholder-friendly initiatives. The 2023 earnings guidance looks 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 year to date. Shares of Ryder have gained 19.1% so far this year compared with the 17.6% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Solid Rank & VGM Score: Ryder currently sports a Zacks Rank #1 (Strong 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 or 2 (Buy), offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment.
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 third-quarter 2023 earnings has moved up 7.3% year over year. For 2023 and 2024, the company’s earnings are expected to increase 7.8% and 4.8%, year over year, respectively.
Positive Earnings Surprise History: Ryder has an impressive earnings surprise history. The company has surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark once). The average beat is 11.2%.
Growth Factors:Ryder’s 2023 outlook is encouraging. Adjusted earnings per share (EPS) for the year is now estimated to be between $12.20 and $12.70 (prior view: $11.30-$12.05). For 2023, management anticipates operating revenues to increase 2%. Net cash from operating activities is projected to be $2.5 billion (prior view: $2.4 billion). Adjusted ROE (return on equity) is still suggested in the 17-19% band (prior view: 16-18%).
Ryder’s measures to reward its shareholders through dividends and share buybacks are appreciative. In July 2023, Ryder announced a 14.5% hike in its quarterly dividend, taking the total to 71 cents per share (annualized $2.84). The company is also active on the buyback front. In February 2023, Ryder’s board approved a new 2-million share discretionary repurchase program. Management is now authorized to buyback up to 2 million shares of common stock at its discretion from Feb 10, 2023, to Feb 10, 2025 (two years).
Other Stocks to Consider
Investors interested in the Zacks Airline industry may also consider some top-ranked stocks like United Airlines (UAL - Free Report) and Delta Air Lines (DAL - Free Report) . UAL presently sports a Zacks Rank #1, while DAL carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
United Airlines is seeing a steady recovery in domestic and international air-travel demand. Owing to this, UAL expects revenues for the September quarter to grow 10-13% year over year. Our third-quarter total revenue estimate hints at an increase of 11.4% year over year.
For third-quarter 2023, United Airlines anticipates capacity to improve 16% from the year-ago reported figure. The Zacks Consensus Estimate for UAL’s current-year earnings has been revised 19.7% upward over the past 60 days.
Improved air-travel demand, particularly on the domestic front, is aiding Delta. Due to the positive, DAL reported better-than-expected EPS and revenues in the second quarter of 2023. For third-quarter 2023, the company expects EPS in the range of $2.2-$2.5.
Management also raised its EPS outlook for the current year. The company now anticipates 2023 EPS (on an adjusted basis) in the band of $6-$7 (previous view: $6 per share). The Zacks Consensus Estimate for DAL’s current-year earnings has been revised 23.5% upward over the past 60 days.