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6 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. Upbeat guidance for full-year 2022 is an added positive.

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 so far this year. Shares of Ryder have gained 13.1% year to date against the 3.6% decline of the industry it belongs to.

Zacks Investment Research
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 fourth-quarter 2022 earnings has moved up 10.5% year over year. For full-year 2022, the company’s earnings have increased 6.9% year over year. 

Positive Earnings Surprise History: Ryder has an impressive earnings surprise history. The company delivered an earnings surprise of 30.13% in the last four quarters, on average.

Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For fourth-quarter 2022, Ryder’s earnings are expected to register 1.7% growth. For 2022, the company’s earnings are expected to grow 67.1% year over year.

Growth Factors: Ryder’s top line is benefiting from strong segmental performances. Revenues at all segments grew (on higher rental revenues, new business and favorable pricing) in the third quarter of 2022. Ryder’s 2022 outlook is encouraging. It expects total revenues and operating revenues to increase approximately 23% and 18%, respectively, in 2022 (previous view: both were expected to rise 22% and 16%, respectively). R now expects adjusted earnings per share of $15.65-$15.85 (previous view: $14.40-$14.80). Adjusted return on equity is now anticipated between 26% and 27% (prior view: 25% - 26%).

Other Stocks to Consider

Some other top-ranked stocks from the broader Zacks Transportation sector are Air Transport Services Group (ATSG - Free Report) and Teekay Tankers Ltd. (TNK - Free Report) ), each currently carrying a Zacks Rank #2.

ATSG has an expected earnings growth rate of 34.34% for the current year. ATSG delivered a trailing four-quarter earnings surprise of 17.78%, on average.

The Zacks Consensus Estimate for ATSG’s current-year earnings has improved 5.2% over the past 90 days.

Teekay Tankers has an expected earnings growth rate of 214.91% for the current year. TNK delivered a trailing four-quarter earnings surprise of 42.23%, on average. Teekay Tankers has a long-term expected growth rate of 3%.

The Zacks Consensus Estimate for TNK’s current-year earnings has improved 95% over the past 90 days. Shares of TNK have soared 142.9% over the past year.


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