4-Star Stocks Poised to Pop: Ryder System

Market-trouncing returns could be written in this 4-Star.

Brian D. Pacampara, CFA
Brian D. Pacampara, CFA
Sep 10, 2012 at 12:00AM
Other

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, truck rental company Ryder System (NYSE: R) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Ryder's business and see what CAPS investors are saying about the stock right now.

Ryder facts

Headquarters (founded) Miami (1933)
Market Cap $2.1 billion
Industry Trucking
Trailing-12-Month Revenue $6.2 billion
Management Chairman/CEO Gregory Swienton
President/COO Robert Sanchez
Return on Equity (average, past 3 years) 10.1%
Cash/Debt $77.7 million / $3.8 billion
Dividend Yield 3%
Competitors Con-way
Penske Truck Leasing
Schenker

Sources: S&P Capital IQ and Motley Fool CAPS. 

On CAPS, 82% of the 176 members who have rated Ryder believe the stock will outperform the S&P 500 going forward.

A few months ago, one of those Fools, alexfsx, succinctly summed up the bull case for our community:

Ryder is getting into natural gas powered trucks more and more. The logistics and transportation business is going to grow as the economy improves and I see the economy going up albeit more slowly than we would like. Also, when the economy starts moving Ryder's truck rental starts moving first when companies rent more to move more merchandise but are still reluctant to invest in new or replacement trucks. A win-win for Ryder.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Ryder may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


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