Ryder System is a leading logistics and transportation company that provides supply chain solutions, including fleet management, transportation, and logistics services
Specializing in the rental and leasing of commercial vehicles, Ryder offers a variety of services such as dedicated transportation, supply chain optimization, and last-mile delivery. The company's comprehensive approach helps businesses streamline their operations and improve efficiency while also managing vehicle maintenance and repair needs. With a strong focus on sustainability and technological innovation, Ryder aims to transform the logistics landscape and deliver superior value to its customers.
As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the ground transportation industry, including Ryder (NYSER) and its peers.
We are looking for value in the Industrials Sector because we are still in a strong bull market that has been not only one of the longest on record, but also has seen the S&P 500 get to one of its lofty valuations ever.
Since December 2019, the S&P 500 has delivered a total return of 89.3%. But one standout stock has more than doubled the market - over the past five years, Ryder has surged 201% to $158.01 per share. Its momentum hasn’t stopped as it’s also gained 31.9% in the last six months, beating the S&P by 21.6%.
The Dow Jones Transportation Average broke to new highs in November and is on track to extend the uptrend in 2025 with the possibility for tailwinds to grow.
Ryder System reported Q2 FY24 sales growth of 10.33% year-on-year to $3.18 billion, missing the $3.24 billion analyst estimate. Adjusted EPS of $3.00 beat the consensus of $2.87. Revenue from Fleet Management Solutions grew 1% to $1.478 billion, while Supply Chain Solutions and Dedicated Transportation Solutions rose 14% and 44%, respectively.
Ryder System has agreed to acquire Pit Stop Fleet Service, enhancing its Torque by Ryder retail mobile maintenance services. Based in Venice, Florida, Pit Stop offers comprehensive fleet maintenance. This acquisition is expected to add $24 million in revenue by 2025, driving significant growth.
