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.
R Stock Hits 52-Week High on Dividend Strength: More Upside Ahead?
Read MoreHide Full Article
Shares of Ryder System (R - Free Report) scaled a 52-week high of $143.73 in the trading session on Aug. 26, 2024, before closing a tad lower at $141.25.
The company’s shares have gained 25.2% over the past six months, steadily outperforming the 16.4% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Why the Uptick in the Ryder Stock?
Ryder’s bottom line has been benefitting from its consistent efforts to reward its shareholders through dividends and share buybacks are appreciative. In 2022, Ryder paid dividends of $123 million and repurchased shares worth $557 million. In 2023, Ryder paid dividends of $128 million and repurchased shares worth $337 million. During the first six months of 2024, Ryder paid dividends of $66 million and repurchased shares worth $141 million. Such shareholder-friendly moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business.
Highlighting its pro-investor stance,on July 12, 2024, Ryder’s board of directors approved a dividend hike of 14.1%, thereby raising its quarterly cash dividend to 81 cents per share ($3.24 annualized) from 71 cents ($2.84 annualized). The raised dividend will be paid out on Sep. 20, 2024, to shareholders of record at the close of business on Aug. 19. The move reflects R’s intention to utilize free cash to enhance its shareholders’ returns.
This marks Ryder’s 192nd consecutive quarterly cash dividend. Notably, Ryder has been making uninterrupted dividend payments for more than 48 years. This highlights its financial bliss.
Further, Ryder has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 12.37%. Ryder has updated its 2024 adjusted earnings per share guidance to be between $11.90 and $12.40 compared with the prior guided range of $11.75 - $12.50. The Zacks Consensus Estimate of $12.19 lies within the updated guidance.
For 2024, the company has raised the lower end of its adjusted ROE (return on equity) guidance in the 16%-16.5% band (prior view: 15.5%-16.5%).
Ryder's cost-cutting initiatives in response to the weak freight market conditions are also commendable. Notably, the company has reduced its 2024 capital expenditure guidance to around $2.9 billion from the $3.2 billion expected previously.
Higher free cash flow generation expectation (this reflects lower capital spending due to softer lease sales activity) for the full year is an added positive. For 2024, Ryder now expects to generate $150-$250 million of free cash flow, which marks an improvement of almost $400 million from the prior expectation of $(175)-$(275) million.
The Zacks Consensus Estimate for current-quarter/third-quarter 2024 earnings has been revised upward by 4.9% over the past 90 days. The Zacks Consensus Estimate for full-year earnings has also been revised upward by 1% over the past 90 days.
CHRW has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 7.33%. CHRW sports a Zacks Rank #1 at present.
CHRW has an expected earnings growth rate of 22.42% for 2024. The Zacks Consensus Estimate for CHRW 2024 earnings has been revised 11.3% upward over the past 90 days. Shares of CHRW have gained 14.3% so far this year.
WAB Lease has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 11.83%. WAB currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for WAB’s 2024 earnings has been revised 3.3% upward over the past 90 days. WAB has an expected earnings growth rate of 25.34% for 2024. Shares of WAB have gained 23.5% so far this year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
R Stock Hits 52-Week High on Dividend Strength: More Upside Ahead?
Shares of Ryder System (R - Free Report) scaled a 52-week high of $143.73 in the trading session on Aug. 26, 2024, before closing a tad lower at $141.25.
The company’s shares have gained 25.2% over the past six months, steadily outperforming the 16.4% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Why the Uptick in the Ryder Stock?
Ryder’s bottom line has been benefitting from its consistent efforts to reward its shareholders through dividends and share buybacks are appreciative. In 2022, Ryder paid dividends of $123 million and repurchased shares worth $557 million. In 2023, Ryder paid dividends of $128 million and repurchased shares worth $337 million. During the first six months of 2024, Ryder paid dividends of $66 million and repurchased shares worth $141 million. Such shareholder-friendly moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business.
Highlighting its pro-investor stance,on July 12, 2024, Ryder’s board of directors approved a dividend hike of 14.1%, thereby raising its quarterly cash dividend to 81 cents per share ($3.24 annualized) from 71 cents ($2.84 annualized). The raised dividend will be paid out on Sep. 20, 2024, to shareholders of record at the close of business on Aug. 19. The move reflects R’s intention to utilize free cash to enhance its shareholders’ returns.
Ryder System, Inc. Dividend Yield (TTM)
Ryder System, Inc. dividend-yield-ttm | Ryder System, Inc. Quote
This marks Ryder’s 192nd consecutive quarterly cash dividend. Notably, Ryder has been making uninterrupted dividend payments for more than 48 years. This highlights its financial bliss.
Further, Ryder has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 12.37%. Ryder has updated its 2024 adjusted earnings per share guidance to be between $11.90 and $12.40 compared with the prior guided range of $11.75 - $12.50. The Zacks Consensus Estimate of $12.19 lies within the updated guidance.
For 2024, the company has raised the lower end of its adjusted ROE (return on equity) guidance in the 16%-16.5% band (prior view: 15.5%-16.5%).
Ryder's cost-cutting initiatives in response to the weak freight market conditions are also commendable. Notably, the company has reduced its 2024 capital expenditure guidance to around $2.9 billion from the $3.2 billion expected previously.
Higher free cash flow generation expectation (this reflects lower capital spending due to softer lease sales activity) for the full year is an added positive. For 2024, Ryder now expects to generate $150-$250 million of free cash flow, which marks an improvement of almost $400 million from the prior expectation of $(175)-$(275) million.
The Zacks Consensus Estimate for current-quarter/third-quarter 2024 earnings has been revised upward by 4.9% over the past 90 days. The Zacks Consensus Estimate for full-year earnings has also been revised upward by 1% over the past 90 days.
Zacks Rank and Stocks to Consider
Currently, Ryder carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some top-rankedstocks from the Zacks Transportation sector are C.H. Robinson Worldwide (CHRW - Free Report) and Wabtec Corporation (WAB - Free Report) .
CHRW has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 7.33%. CHRW sports a Zacks Rank #1 at present.
CHRW has an expected earnings growth rate of 22.42% for 2024. The Zacks Consensus Estimate for CHRW 2024 earnings has been revised 11.3% upward over the past 90 days. Shares of CHRW have gained 14.3% so far this year.
WAB Lease has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average surprise of 11.83%. WAB currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for WAB’s 2024 earnings has been revised 3.3% upward over the past 90 days. WAB has an expected earnings growth rate of 25.34% for 2024. Shares of WAB have gained 23.5% so far this year.