NYSE: R

Introduction:

Ryder System, Inc. engages in the business of transportation and supply chain management solutions. Its three business segments consist of fleet management solutions (65% of total sales), dedicated transportation solutions (15% of total sales), and supply chain solutions (25% of total sales). Its current stock price as of April 2018 is $74.31 with a market cap of $3.762B

Recommendation:

Buy at current stock price and hold until end of 2019, with a target price of $87.50 and a stop loss price of $62.52

Summary:

Ryder’s significant customer base includes 50,000 companies that span across the automotive, food and beverage, healthcare, oil and gas, transportation, and many other industries. In the U.S., it has a 99.58% market share of commercial rental and a 13% market share of Fleet Management Solutions.

Its recent acquistion of MXD will give it access to the growing e-commerce sector, thus alleviating the losses typically suffered by the retail industry. Ryder’s network of 121 e-commerce hubs gives it access to 95% of US and Canada within a 2-day delivery timeframe.

Historically, Ryder’s earnings reports tended to negatively affect stock price. Our recommendation is to hold until immediately after the earning report, buying at an even greater discount with long-term growth through acquisition and COOP catalysts.