We recently issued an updated report on Ryder System, Inc. R.
Ryder’s measures to reward shareholders through dividends despite COVID-19 woes are impressive. Notably, the company paid out dividends worth $89.7 million in the first nine months of 2020, up 3% year over year. In the December-end quarter, Ryder expects to resume its anti-dilutive share repurchase program that was temporarily paused due to the coronavirus pandemic.
The company’s cost-cutting measures to combat coronavirus-woes are also encouraging. Temporary furloughs of employees, reduced discretionary spending and low medical expenses led to cost savings of $50 million in the first nine months of 2020. Additionally, the company expects annual savings of $30 million in the current year from its multi-year maintenance initiative.
However, Ryder is seeing significant decline in rental demand due to reduced business activity stemming from the coronavirus pandemic. Used-vehicle market conditions continue to be weak. The company anticipates a delay in recovery of used-vehicle pricing due to the effects of the coronavirus pandemic.
Zacks Rank & Other Stocks to Consider
Ryder currently carries a Zacks Rank #2 (Buy).
Investors interested in the Zacks Transportation sector may also consider Knight-Swift Transportation Holdings Inc. KNX, FedEx Corporation FDX and Herc Holdings HRI. All the stocks sport a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, FedEx and Herc Holdings are pegged at 15%, 12% and 6.5%, respectively.
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Ryder System, Inc. (R) : Free Stock Analysis Report
FedEx Corporation (FDX) : Free Stock Analysis Report
KnightSwift Transportation Holdings Inc. (KNX) : Free Stock Analysis Report
Herc Holdings Inc. (HRI) : Free Stock Analysis Report
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