Here's Why Investors Should Retain Ryder Stock Right Now

Ryder’s R top line is bolstered by its recent acquisitions of Cardinal and IFS, boosting the company’s performance. The shareholder-friendly approach is encouraging. However, R is grappling with weak liquidity and escalated operating expenses.Factors Favoring RRyder's long-standing commitment to sustainability through initiatives like fleet upgrades, reducing truck idling, and improving route efficiency is commendable. A SmartWay partner since 2006, Ryder has earned the Excellence Award six times, demonstrating leadership in reducing emissions and promoting greener operations. The EPA SmartWay program acknowledges Ryder's efforts to help reduce pollution and support climate change mitigation in the freight industry.Despite the market challenges, the company's acquisitions of Cardinal and IFS contributed to a 9% increase in operating revenues, reaching $2.6 billion in the third quarter of 2024 compared to the prior year. This growth highlights the positive impact of these strategic acquisitions on Ryder's overall performance.Ryder’s focus on returning capital to shareholders through dividends and buybacks aligns with its strategy of maintaining a balanced and sustainable growth model. In the fourth quarter of 2024, the company launched a new share repurchase program, authorizing the buyback of up to 2.0 million shares from Oct. 9, 2024, to Oct. 9, 2026. This program aims to enhance capital flexibility, manage leverage and boost shareholder returns. It follows the completion of a similar 2.0 million share repurchase program in September 2024.Moreover, in the third quarter of 2024, on a year-to-date basis, Ryder returned $382 million in cash to its shareholders through share repurchases and dividends.Owing to such tailwinds, shares of R have risen 40.8% over the past six months compared with the industry’s growth of 24.6%.Image Source: Zacks Investment ResearchR: Key Risks to WatchRyder’s financial stability is challenged by the increased operating expenses and weak liquidity. In the third quarter of 2024, the total operating expenses rose 9% year over year. This surge in operating expenses was primarily driven by elevated cost of services and selling, general and administrative expenses, adversely impacting the company’s bottom line.In the third quarter of 2024, the cost of services accounting for 59.5% of the total operating expenses rose 16% year over year and selling, general and administrative expenses surged 6.1% year over year.Ryder exited the September-end quarter with a current ratio (a measure of liquidity) of 0.74. A current ratio of greater than 1 is always desirable as it indicates that the company holds sufficient cash to meet its short-term obligations.Ryder’s Zacks RankR currently carries a Zacks Rank #3 (Hold).Stocks to Consider Investors interested in the Zacks Transportation sector may consider Westinghouse Air Brake Technologies WAB and SkyWest SKYW.Westinghouse Air Brake Technologies currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. WAB has an expected earnings growth rate of 2.01% for the current year. The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average beat of 9.46%. Shares of WAB have risen 75.3% in the past year.SkyWest currently sports a Zacks Rank #1. SKYW has an expected earnings growth rate of 4.07% for the current year.The company has an encouraging track record with respect to the earnings surprise, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 79.12%. Shares of SKYW have climbed 149.7% in the past year.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ryder System, Inc. (R): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report Westinghouse Air Brake Technologies Corporation (WAB): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks