Ryder Stock Is Stuck In Reverse But Brokers Say Buy

This week I'm seeking a prestigious and long-term dividend-paying stock from the industrials business sector. 

That industrials sector includes twenty-three industries all related to designing, fabricating and servicing stuff we know, want and use. The industrials industries range from aerospace and defense to waste management with all the transportation, business services, and equipment required in between. 

Today I'm reviewing a mid-cap rental and leasing services company, named Ryder System Inc. Its trading ticker symbol is R

Ryder System Inc is engaged in supply chain activities. Its services include transportation, supply chain and fleet management solutions.

The company operates through three segments: Fleet Management Solutions (FMS), Dedicated Transportation Solutions (DTS), and Supply Chain Solutions (SCS). 

The FMS segment offers full-service leasing and leasing with flexible maintenance options, as well as maintenance services, supplies, and related equipment for operation of the vehicles. This segment also provides access to diesel fuel; offers fuel services, such as fuel planning and tax reporting, centralized billing, fuel cards, and fuel monitoring services; and sells used vehicles through its 53 retail sales centers and Usedtrucks.Ryder.com Website. 

The DTS segment offers equipment, maintenance, drivers, administrative, and additional services, as well as routing and scheduling, fleet sizing, safety, regulatory compliance, risk management, technology and communication systems support, and other technical support services. 

The SCS segment comprises distribution management services, handling import and export for international shipments, as well as other value-added services. This segment also offers transportation management services, and knowledge-based professional services. 

Ryder System, Inc. was founded in 1933 and is headquartered in Miami, Florida.

I use three key data points to gauge the value of any dividend equity or fund like Ryder System Inc. (R): 

(1) Price

(2) Dividends

(3) Returns

Besides those three, four more keys will finally unlock an equity or fund in which to invest.

But those first three primary keys, best tell whether a company has made, is making, and will make money. 

R Price

Ryder's price per share was $59.65 at yesterday's market close. A year ago its price was $81.50 for a price roll-back of $21.85 per share for the year.  

Assuming Ryder's price will trade in the range of $50 to $90 next year, Ryder's recent $59.65 price could improve by $10.00 to $69.65 by late-October, 2019. 

R Dividends

Ryder's most recent quarterly dividend was $0.54 declared October 5th and payable December 21st. 

At this most recent $0.54 quarterly rate, Ryder's annual dividend equals $2.16  yielding 3.6% at yesterday's closing $59.65 price.

Gains For R?

Adding the $2.16 estimated annual dividend to my estimated $10.00 annual price upside for Ryder System Inc (R) makes a $12.16  potential gross annual per share gain, which will be reduced by any costs to trade the shares.  

 A little over $1,000.00 invested today at the $59.65 recent price buys 17 of Ryder System Inc (R) shares. 

A $10 broker fee paid half at purchase and half at sale costs $0.59 per share, subtracting that $0.59 brokerage cost from the estimated $12.16 gross annual gain leaves a net gain of $11.57 X 17 shares = $196.69 or a 19.5% net gain on a $1,014.05 investment.

Therefore, Ryder System Inc whose trading ticker symbol is R, now shows a possible 19.5% net gain including a 3.6% dividend yield. 

Thirteen brokers cover this stock:

Seven say "buy" R.

None say R will "outperform" its peers.

Five say "hold" R.

One says R will "underperform" its peers.

Out of those thirteen opinions, the general recommendation number comes up as 2.0 or "outperform".

These thirteen wizards of wall street also reckon a price target $15.00 higher than my estimated $69.65 scenario.

So, you could look at these speculative numbers this way, Ryder System Inc, whose trading ticker symbol is R,  has made money, is making money, and could net a 28% to 40% net annual gain including a 3.6% dividend yield. It could be more, it could be less. 

The above speculation is based on past year performance. The actual results remain to be seen to determine if Ryder System Inc (R) is worth your time and money.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.