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Ryder (R) to Gain From Pit Stop Acquisition: Here's How
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Ryder System, Inc. (R - Free Report) has inked a deal to purchase Venice, FL-based Pit Stop Fleet Service (Pit Stop), which is likely to enhance growth of its retail mobile maintenance business, Torque by Ryder.
Founded in 1997, Pit Stop provides retail mobile commercial fleet maintenance, including battery, tire and transmission repairs, preventative maintenance, and breakdown assistance.
Subject to customary closing conditions, the deal is anticipated to be completed by Aug 1. Financial terms of the deal have been kept under wraps.
How Will the Deal Benefit?
On completion, Ryder plans to fully integrate Pit Stop employees, assets, and operations with the help of its co-founders, Ron and Connie Perry.
The said acquisition is anticipated to add almost $24 million in gross revenues to Ryder’s Torque by Ryder’s business in 2025. The deal will also be accretive to Ryder’s earnings.
Apart from financial gains, the deal is expected to expand Ryder’s retail mobile maintenance business geographically also. The acquisition is likely to make Torque by Ryder available in 140 markets in 20 states — Alabama, Arkansas, Arizona, Florida, Georgia, Indiana, Kentucky, Louisiana, Maryland, Mississippi, New Jersey, Nevada, New Mexico, North Carolina, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, and Virginia.
Torque by Ryder was launched in July 2023 and with the inclusion of Pit Stop, it is likely to operate a workforce of more than 200 technicians, delivering complete support to customers. This includes a wide range of vehicles serviced, including commercial trucks, trailers, delivery vans, refrigerated vehicles, construction and utility vehicles, passenger and shuttle buses, and emergency response vehicles.
Tom Havens, president of Fleet Management Solutions at Ryder, stated, "With our complementary retail mobile maintenance fleet services across diverse industries and markets, we now have even greater economies of scale and offer unparalleled flexibility for fleets requiring swift maintenance services."
Price Performance
Shares of Ryder performed well on the bourse on Jul 13, 2024, closing the trading session at $131.94 per share, up 2.48% from the Jul 12 closing. The upside was owing to the acquisition update announcement by Ryder.
Additionally, shares of Ryder have gained 48.6% over the past year compared with 30.9% growth of the industry.
SKYW flaunts a VGM Score of A and has a market capitalization of $3.28 billion. The Zacks Consensus Estimate for SKYW’s 2024 earnings per share (EPS) has moved up 6.9% in the past 90 days. Shares of SKYW have surged 60.1% year to date.
SKYW’s expected growth rate for 2024 is more than 100%. SKYW has a trailing four-quarter earnings surprise of 128.09%, on average.
Shares of KEX have surged 54.9% in the year-to-date period. KEX has a VGM Score of B and has a market capitalization of $7.07 billion
The Zacks Consensus Estimate for KEX’s 2024 EPS has moved up 7.3% in the past 90 days. KEX has an expected earnings growth rate of 42.47% for 2024. KEX has a trailing four-quarter earnings surprise of 10.26%, on average.
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Ryder (R) to Gain From Pit Stop Acquisition: Here's How
Ryder System, Inc. (R - Free Report) has inked a deal to purchase Venice, FL-based Pit Stop Fleet Service (Pit Stop), which is likely to enhance growth of its retail mobile maintenance business, Torque by Ryder.
Founded in 1997, Pit Stop provides retail mobile commercial fleet maintenance, including battery, tire and transmission repairs, preventative maintenance, and breakdown assistance.
Subject to customary closing conditions, the deal is anticipated to be completed by Aug 1. Financial terms of the deal have been kept under wraps.
How Will the Deal Benefit?
On completion, Ryder plans to fully integrate Pit Stop employees, assets, and operations with the help of its co-founders, Ron and Connie Perry.
The said acquisition is anticipated to add almost $24 million in gross revenues to Ryder’s Torque by Ryder’s business in 2025. The deal will also be accretive to Ryder’s earnings.
Apart from financial gains, the deal is expected to expand Ryder’s retail mobile maintenance business geographically also. The acquisition is likely to make Torque by Ryder available in 140 markets in 20 states — Alabama, Arkansas, Arizona, Florida, Georgia, Indiana, Kentucky, Louisiana, Maryland, Mississippi, New Jersey, Nevada, New Mexico, North Carolina, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, and Virginia.
Torque by Ryder was launched in July 2023 and with the inclusion of Pit Stop, it is likely to operate a workforce of more than 200 technicians, delivering complete support to customers. This includes a wide range of vehicles serviced, including commercial trucks, trailers, delivery vans, refrigerated vehicles, construction and utility vehicles, passenger and shuttle buses, and emergency response vehicles.
Tom Havens, president of Fleet Management Solutions at Ryder, stated, "With our complementary retail mobile maintenance fleet services across diverse industries and markets, we now have even greater economies of scale and offer unparalleled flexibility for fleets requiring swift maintenance services."
Price Performance
Shares of Ryder performed well on the bourse on Jul 13, 2024, closing the trading session at $131.94 per share, up 2.48% from the Jul 12 closing. The upside was owing to the acquisition update announcement by Ryder.
Additionally, shares of Ryder have gained 48.6% over the past year compared with 30.9% growth of the industry.
Image Source: Zacks Investment Research
Zacks Rank and Stocks to Consider
Ryder currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks for investors’ consideration in the Zacks Transportation sector include SkyWest, Inc. (SKYW - Free Report) and Kirby Corporation (KEX - Free Report) . Each stock presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SKYW flaunts a VGM Score of A and has a market capitalization of $3.28 billion. The Zacks Consensus Estimate for SKYW’s 2024 earnings per share (EPS) has moved up 6.9% in the past 90 days. Shares of SKYW have surged 60.1% year to date.
SKYW’s expected growth rate for 2024 is more than 100%. SKYW has a trailing four-quarter earnings surprise of 128.09%, on average.
Shares of KEX have surged 54.9% in the year-to-date period. KEX has a VGM Score of B and has a market capitalization of $7.07 billion
The Zacks Consensus Estimate for KEX’s 2024 EPS has moved up 7.3% in the past 90 days. KEX has an expected earnings growth rate of 42.47% for 2024. KEX has a trailing four-quarter earnings surprise of 10.26%, on average.