5 Arguments in Favor of Ryder (R) Stock for Investors Right Now Strong rental demand and competitive pricing are helping Ryder System, Inc. Encourageing steps have been taken by the corporation to reward its shareholders. Positive guidance for the entire 2022 is an extra bonus.
Let’s examine the characteristics that make this stock a desirable investment against this background.
What Makes Ryder an Attractive Pick?
An Outperformer: The stock has had a strong year on the market so far, according to a glance at the company’s price trend. Compared to the 3.6% drop of the sector it is a part of, shares of Ryder have increased 13.1% year to date.
Solid Rank & VGM Score: Ryder now has a VGM Score of A and a Zacks Rank #2 (Buy). Our analysis reveals that the finest investing possibilities are presented by stocks with a VGM Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 rating. As a result, the firm now appears like a good investment opportunity. The entire list of today’s Zacks #1 Rank stocks is available here.
Northward Estimate Revisions: When it comes to a stock’s price, the direction of estimate revisions is a crucial indicator. The Zacks Consensus Estimate for Ryder’s fourth-quarter 2022 profits increased 10.5% year over year over the previous 90 days. The company’s earnings for the entire 2022 fiscal year climbed 6.9% over the previous year.
Positive Earnings Surprise History: Ryder has a distinguished record of earnings surprises. In each of the previous four quarters, the firm surprised investors with its results by an average of 30.13%.
Growth Factors: Ryder’s top line is gaining from excellent segmental results. In the third quarter of 2022, sales increased across all segments (thanks to increased rental income, new business, and favourable pricing). Ryder’s forecast for 2022 is promising. It anticipates that overall sales and operating revenues will climb by around 23% and 18%, respectively, in 2022 (as opposed to the earlier projection of both rising by 22% and 16%, respectively). R has raised his adjusted earnings per share forecast from $14.40 to $14.80 to $15.65 to $15.85. The adjusted return on equity forecast now ranges from 26% to 27% (previous view: 25%–26%).