Truck Rental Company Moving On Up

by Sam Collins | March 19, 2013 1:39 am

Ryder System (NYSE:R[1]) — This company provides transportation and supply chain management solutions, including the leasing, contract maintenance and commercial rental of trucks, tractors and trailers. It recently entered into an agreement to provide a first-ever leasing arrangement for gas-powered tractors. 

In 2013, analysts expect an increase in leasing vehicles rather than rentals as the economic environment becomes more stable. This provides for longer-term contracts and adds predictability to revenues and earnings. The consensus estimate for 2013 earnings per share (EPS) is $4.81, up from $4.04 in 2012, and $5.46 for 2014. The company pays an annual dividend of $1.24 per share for a current yield of 2%.

Technically, the stock broke a double-top in January and successfully tested its 50-day moving average as it broke into new high ground last week. It is under heavy accumulation and MACD is flashing a “buy.” 

Buy R with a trading target of $70. Investors may want to hold the stock for much greater long-term gains.

R Chart
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