Ryder (R) Extends Multiclient Warehouse Footprint in Aurora
Ryder System, Inc. (R) has widened its multiclient warehouse footprint in the greater Chicago area by adding a 400,000-square-foot distribution center in Aurora, IL. This newly built facility was opened in August and is the recent addition to the present six-building campus totaling 2.4 million square feet.
The newest center has omnichannel fulfillment capabilities, food-grade certifications, ambient temperature controls and 56 dock doors and 26 trailer stalls. With this, the total count for the six-building campus comes to 335 dock doors, 175 cross-dock doors, and 257 trailer stalls to serve customers. The campus also has rail access and a one-day truck drive for more than half of the U.S. population.
The latest extension marks Ryder’s presence in the key Midwest distribution hub. With this, R now operates 11 multiclient and 23 dedicated customer warehouses, exceeding more than 17 million square feet in the greater Chicago area.
Apart from geographical extension and strengthening of competitive position, the newest warehouse addition is also helping to create job opportunities in the area. Ryder plans to hire for 60 additional positions to manage the new facility.
Darin Cooprider, senior vice president of consumer-packaged goods at Ryder, stated, "The location is key. We now have six multiclient warehouses within a five-mile radius, and we have about a thousand employees within a 10- to 15-minute commute, which allows us to pool resources to account for our customers’ seasonal and market fluctuations."
With 300 warehouses covering more than 95 million square feet of space across North America, R serves more than 20 industries. Ryder’s warehouse and distribution capabilities include supply chain engineering and optimization, integrated technology and data analytics and value-added services. Ryder also serves the top 10 food and beverage companies in the United States.
Shares of Ryder have gained 18.6% so far this year compared with the 1.2% rise of the industry it belongs to.
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Zacks Rank and Other Stocks to Consider
Currently, Ryder carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the Zacks Transportation sector are GATX Corporation (GATX), Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation (WAB) and SkyWest, Inc. (SKYW). Each of these companies presently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GATX has an expected earnings growth rate of 14.33% for the current year. GATX delivered a trailing four-quarter earnings surprise of 17.30%, on average.
The Zacks Consensus Estimate for GATX’s current-year earnings has improved 2.1% over the past 90 days. Shares of GATX have gained 6% year to date.
Wabtec has an expected earnings growth rate of 16.87% for the current year. WAB delivered a trailing four-quarter earnings surprise of 3.42%, on average.
The Zacks Consensus Estimate for WAB’s current-year earnings has improved 4.9% over the past 90 days. Shares of WAB have gained 5.9% year to date.
SkyWest's fleet-modernization efforts are commendable.A fall in operating expenses is a tailwind for SkyWest. In second-quarter 2023, the metric dipped 2.4% to $693.8 million due to a decline in operating costs. Low operating expenses boost bottom-line results. Shares of SKYW have surged 163.6% year to date.
SKYW delivered a trailing four-quarter earnings surprise of 31.51%, on average.
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