Ryder System (R): Is the Stock Undervalued After Its Recent Pullback?

Ryder System (R) continues to attract attention from investors curious about its recent performance, especially given the shifts in transportation and logistics demand this year. Shares have seen movement that reflects both broader market trends and company updates.

See our latest analysis for Ryder System.

Ryder System’s share price has ebbed and flowed this year, recently pulling back about 6.5% over the past month even as its year-to-date gain sits near 9%. While momentum has cooled a bit in the short term, the company’s long-term track record remains strong with a 245% total shareholder return over five years. This signals that many investors still see growth potential here.

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The question now is whether Ryder’s recent dip leaves the stock undervalued relative to its longer-term gains, or if the market has already built future growth prospects into the current price. This could leave little room for investors to get ahead.

Most Popular Narrative: 15.3% Undervalued

Ryder’s most popular narrative pegs its fair value well above the recent close, signaling the market may be missing key levers. This stage is set by years of transformation, leaving investors to wonder what’s truly driving the disconnect.

A transformed business model built on high-margin, multi-year contracts and disciplined pricing, combined with significant operating cash flow and a strong balance sheet, provides Ryder with the capital flexibility to fund organic growth, strategic acquisitions, and shareholder returns, creating long-term earnings growth potential.

Read the complete narrative.

Craving the full playbook behind Ryder's compelling price target? Unpack the bold storylines of profit acceleration, strategic expansion, and disciplined capital moves to find out which number turns this target into a market-moving thesis.

Result: Fair Value of $201.33 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, prolonged weakness in freight demand or further declines in used vehicle prices could undermine Ryder's earnings growth assumptions and put pressure on its long-term margin outlook.

Find out about the key risks to this Ryder System narrative.

Build Your Own Ryder System Narrative

See something different in the numbers, or want to chart out your own view? Dive into the details and build your own unique outlook in no time with Do it your way.

A great starting point for your Ryder System research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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