Ryder System, Inc.
) has opened a new maintenance and rental facility in Vermont
dedicated to commercial vehicle fleets. The existing facility in
the area caters to a variety of customers from different
industries and services with short-term full service rental for
commercial vehicles. We believe increased infrastructural support
will not only attracts more customers and bode well for the
long-term growth of the company.
Ryder System continues to benefit from organic growth across
its business line. Strong market demand with tighter
transportation markets, in particular for trucks, has enabled the
company to realize higher pricing. The company expects improved
offerings in contractual product lines in the FMS segment with a
newer lease fleet and various maintenance initiatives to improve
2013 earnings. Organic growth in Full Service Lease along with
improved volumes in new business and supply chain are expected to
aid the company in generating high revenues in the coming
In addition, increase in used vehicle sales will continue,
with better pricing aiding growth. Additionally, Ryder is
targeting emerging markets for fuel-efficient vehicles under
projects like SANBAG (San Bernardino Associated Governments). In
the coming days, we expect the demand for such vehicles to rise,
providing potential market opportunity for the company. In Mar
2013, the company entered its first-ever full-service lease
agreement for providing 23 compressed natural gas tractors to
La.-based Eagle Distributing of Shreveport, Inc.
Ryder currently holds a Zacks Rank #3 (Hold).
Other stocks worth investing in this sector include
American Railcar Industries, Inc.
Trinity Industries Inc.
). While AMERCO carries a Zacks Rank #1 (Strong Buy), the other
two companies hold a Zacks Rank #2 (Buy).
AMER RAILCAR (ARII): Free Stock Analysis
RYDER SYS (R): Free Stock Analysis Report
TRINITY INDS IN (TRN): Free Stock Analysis
AMERCO INC (UHAL): Get Free Report
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