R - Ryder System: Aggressive Investment Continues Through The Downcycle

2024-03-28 01:56:39 ET

Summary

• Ryder System is experiencing strong cash flow and sustained fleet growth, making it an attractive investment.
• The company has a shareholder-friendly approach, returning $460 million to shareholders in fiscal 2023.
• Using a dividend discount model, R stock's valuation is estimated to be $219 per share, well above its current trading price.

Intro

We wrote about Ryder System, Inc. ( R ) back in early January of this year we recommended that investors implement a trailing stop-loss to protect paper gains from any potential unexpected down move. As noted in the commentary & associated technicals, Ryder is not a recession-proof stock thus demonstrated by the performance of stock in the 2008 & 2020 recessions leading to an above-average beta (1.38). However, the wind certainly seems to be in Ryder's sales at present as growing cash flow continues to lead to strong organic-backed investment surmising sustained fleet growth as well as ongoing growth initiatives....

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