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Ryder System, Inc. (R) Hits Fresh High: Is There Still Room to Run?

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Shares of Ryder (R - Free Report) have been strong performers lately, with the stock up 13.6% over the past month. The stock hit a new 52-week high of $218.36 in the previous session. Ryder has gained 13.6% since the start of the year compared to the 13% gain for the Zacks Transportation sector and the 8.7% return for the Zacks Transportation - Equipment and Leasing industry.

What's Driving the Outperformance?

The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 23, 2025, Ryder reported EPS of $3.57 versus consensus estimate of $3.56.

For the current fiscal year, Ryder is expected to post earnings of $14.94 per share on $12.74 in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $17.21 per share on $13.27 in revenues. This represents a year-over-year change of 14.83% and 4.21%, respectively.

Valuation Metrics

Though Ryder has recently hit a 52-week high, what is next for Ryder? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Ryder has a Value Score of A. The stock's Growth and Momentum Scores are B and F, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 14.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 14.6X. On a trailing cash flow basis, the stock currently trades at 3.9X versus its peer group's average of 5.9X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Ryder an interesting choice for value investors.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Ryder currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Ryder fits the bill. Thus, it seems as though Ryder shares could have potential in the weeks and months to come.

How Does R Stack Up to the Competition?

Shares of R have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Freightcar America, Inc. (RAIL - Free Report) . RAIL has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of B, and a Momentum Score of F.

Earnings were strong last quarter. Freightcar America, Inc. beat our consensus estimate by 50.00%, and for the current fiscal year, RAIL is expected to post earnings of $0.76 per share on revenue of $520.21 million.

Shares of Freightcar America, Inc. have gained 12.9% over the past month, and currently trade at a forward P/E of 16.37X and a P/CF of 7.75X.

The Transportation - Equipment and Leasing industry is in the top 10% of all the industries we have in our universe, so it looks like there are some nice tailwinds for R and RAIL, even beyond their own solid fundamental situation.

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