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Tale of the Tape

Zacks Equity Research

What Falling Estimates & Price Mean for Ryder System (R)

R CAI

Trades from $3
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Similar to wise buying decisions, exiting certain underperformers at the right time helps maximize portfolio returns. Selling off losers can be difficult, but if both the share price and estimates are falling, it could be time to get rid of the security before more losses hit your portfolio.

One such stock that you may want to consider dropping is Ryder System, Inc. (R - Free Report) , which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. A Zacks Rank #4 (Sell) further confirms weakness in R.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 5 estimates moving down in the past 30 days, compared with no upward revisions. This trend has caused the consensus estimate to trend lower, going from $5.20  a share a month ago to its current level of $4.35.

Also, for the current quarter, Ryder System has seen 5 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 93 cents a share from $1.37 over the past 30 days.  

The stock also has seen some pretty dismal trading lately, as the share price has dropped 9.7% in the past month.

Ryder System, Inc. Price and Consensus

 

Ryder System, Inc. Price and Consensus | Ryder System, Inc. Quote

So, it may not be a good decision to keep this stock in your portfolio anymore, at least if you don’t have a long-time horizon to wait.

If you are still interested in the Transportation - Equipment and Leasing industry, you may instead consider a better-ranked stock - CAI International, Inc. (CAI - Free Report) . The stock currently holds a Zacks Rank #1 (Strong Buy) and may be a better selection at this time. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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