NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company has had generally poor debt management on most measures that we evaluated.
Highlights from the ratings report include:
- R's revenue growth has slightly outpaced the industry average of 11.8%. Since the same quarter one year prior, revenues rose by 19.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- RYDER SYSTEM INC has improved earnings per share by 44.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, RYDER SYSTEM INC increased its bottom line by earning $2.38 versus $1.62 in the prior year. This year, the market expects an improvement in earnings ($3.48 versus $2.38).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Road & Rail industry. The net income increased by 45.5% when compared to the same quarter one year prior, rising from $38.84 million to $56.52 million.
Ryder System, Inc. provides transportation and supply chain management solutions. It operates in three segments: Fleet Management Solutions (FMS), Supply Chain Solutions (SCS), and Dedicated Contract Carriage (DCC). The company has a P/E ratio of 15.3, below the average diversified services industry P/E ratio of 17.3 and below the S&P 500 P/E ratio of 17.7. Ryder System has a market cap of $2.4 billion and is part of the
industry. Shares are down 2.5% year to date as of the close of trading on Friday.
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