Ryder System Inc.
) - one of the world's largest providers of integrated logistics
and transportation solutions - will be delivering three new
refrigerated trucks to Mama Bosso under a Full Service Lease
The deal will help Mama Bosso to deliver its popular frozen pizza
to grocery stores in the Quad Cities region in a timely manner.
Mama Bosso owns limited number of trucks, thus outsourcing its
fleet operations will help the company to improve its core
During the second quarter of 2013, Ryder reported mixed financial
results. The bottom line outpaced the Zacks Consensus Estimate
but the top line missed the same. Moreover, the Fleet Management
Solutions segment, which contributes the maximum revenues, grew
2% year over year to $1,121 million in the second quarter buoyed
by 12% and 4% increase in Contract-related maintenance revenues
and Full Service lease revenues, respectively.
Last month, Ryder opened a new maintenance and rental facility in
Anchorage, Alaska. The unit represents the company's first such
operating location in the area. The service outlet provides
maintenance and rental services to commercial vehicles. We
believe that increased infrastructural support will not only
attract more customers but it also bode well for the long-term
growth of the company.
Hence, we believe Ryder's series of contract wins, coupled with a
favorable lease rate environment, will deliver strong results for
the company going forward. Moreover, strategic acquisitions and
increased investments in vehicles provide long-term growth
potential for Ryder.
Ryder currently carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Other stocks worth investing in this sector include
Trinity Industries Inc.
American Railcar Industries, Inc.
). AMERCO has a Zacks Rank #1 (Strong Buy) while Trinity sports a
Zacks Rank #2 (Buy). American Railcar carries a Zacks Rank #3
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
To read this article on Zacks.com click here.