Ryder Systems (R)
Providing transportation and supply chain management solutions, Ryder Systems (R) is perhaps best known for its fleet of white rental trucks. However, Ryder is a monster of a logistics firm and has recently expanded its global reach into the oil and gas world.
Ryder recently unveiled a new logistics and transportation unit that will focus on transporting product out of the shale fields as well as equipment management and general energy logistics. According to Ryder, there are plenty of inefficiencies in energy transportation that are costing E&P firms some serious bucks. By wringing out these issues, Ryder estimates that it can save energy firms 30% on fleet equipment costs as reduce pickup and delivery delays by 50%.
That’s a big savings and could help turn the tide at some unprofitable wells.
While the division is new, Ryder stock could see plenty of organic and new growth as the E&P sector takes advantage of the cost savings in North America’s shale. Ryder stock is still pretty cheap, at a forward P/E of just 13.