- 3 Reasons to Sell R and 1 Stock to Buy Instead
May 16, 2026
Since May 2021, the S&P 500 has delivered a total return of 80.2%. But one standout stock has more than doubled the market - over the past five years, Ryder has surged 168% to $227.81 per share. Its momentum hasn’t stopped as it’s also gained 34.6% in the last six months thanks to its solid quarterly results, beating the S&P by 24.5%.
Is there a buying opportunity in Ryder, or does it present a risk to your portfolio? Dive into our full research report to see our analyst team’s opinion, it’s free.
Why Is Ryder Not Exciting?
Despite the momentum, we're cautious about Ryder. Here are three reasons you should be careful with R and a stock we'd rather own.
1. Lackluster Revenue Growth
We at StockStory place the most emphasis on long-term growth, but within industrials, a stretched historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Ryder’s recent performance shows its demand has slowed as its annualized revenue growth of 3% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs.Ryder Year-On-Year Revenue Growth
2. Low Gross Margin Reveals Weak Structural Profitability
Cost of sales for an industrials business is usually comprised of the direct labor, raw materials, and supplies needed to offer a product or service. These costs can be impacted by inflation and supply chain dynamics.
Ryder has bad unit economics for an industrials business, signaling it operates in a competitive market. As you can see below, it averaged a 19.7% gross margin over the last five years. That means Ryder paid its suppliers a lot of money ($80.26 for every $100 in revenue) to run its business.Ryder Trailing 12-Month Gross Margin
3. Cash Burn Ignites Concerns
If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.
While Ryder posted positive free cash flow this quarter, the broader story hasn’t been so clean. Ryder’s demanding reinvestments have drained its resources over the last five years, putting it in a pinch and limiting its ability to return capital to investors. Its free cash flow margin averaged negative 1.4%, meaning it lit $1.44 of cash on fire for every $100 in revenue.Ryder Trailing 12-Month Free Cash Flow Margin
Final Judgment
Ryder isn’t a terrible business, but it doesn’t pass our quality test. With its shares beating the market recently, the stock trades at 15.4× forward P/E (or $227.81 per share). While this valuation is reasonable, we don’t really see a big opportunity at the moment. We're pretty confident there are superior stocks to buy right now. Let us point you toward one of our all-time favorite software stocks.
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- Is Pangaea Logistics Solutions (PANL) Outperforming Other Transportation Stocks This Year?
May 14, 2026
For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Pangaea Logistics (PANL) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Transportation sector should help us answer this question.
Pangaea Logistics is a member of our Transportation group, which includes 100 different companies and currently sits at #11 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Pangaea Logistics is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for PANL's full-year earnings has moved 82.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, PANL has gained about 20.1% so far this year. In comparison, Transportation companies have returned an average of 7.2%. This shows that Pangaea Logistics is outperforming its peers so far this year.
Another stock in the Transportation sector, Ryder (R), has outperformed the sector so far this year. The stock's year-to-date return is 18.8%.
For Ryder, the consensus EPS estimate for the current year has increased 3.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Pangaea Logistics is a member of the Transportation - Shipping industry, which includes 22 individual companies and currently sits at #58 in the Zacks Industry Rank. On average, stocks in this group have gained 46.9% this year, meaning that PANL is slightly underperforming its industry in terms of year-to-date returns.
In contrast, Ryder falls under the Transportation - Equipment and Leasing industry. Currently, this industry has 9 stocks and is ranked #205. Since the beginning of the year, the industry has moved +10.1%.
Going forward, investors interested in Transportation stocks should continue to pay close attention to Pangaea Logistics and Ryder as they could maintain their solid performance.
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Pangaea Logistics Solutions Ltd. (PANL) : Free Stock Analysis Report
Ryder System, Inc. (R) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
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- Are Investors Undervaluing Ryder System (R) Right Now?
May 14, 2026
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Ryder System (R) is a stock many investors are watching right now. R is currently sporting a Zacks Rank #2 (Buy) and an A for Value.
We should also highlight that R has a P/B ratio of 2.44. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. R's current P/B looks attractive when compared to its industry's average P/B of 2.47. Over the past year, R's P/B has been as high as 2.52 and as low as 1.79, with a median of 2.16.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. R has a P/S ratio of 0.69. This compares to its industry's average P/S of 1.23.
Finally, investors will want to recognize that R has a P/CF ratio of 3.25. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.16. R's P/CF has been as high as 3.35 and as low as 2.37, with a median of 2.93, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Ryder System is likely undervalued currently. And when considering the strength of its earnings outlook, R sticks out as one of the market's strongest value stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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Ryder System, Inc. (R) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
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- Are Investors Undervaluing Ryder System (R) Right Now?
May 14, 2026 · zacks.com
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
- Caldwell Announces Relaunch of Canada's Top 40 Under 40(R) Award Program
May 13, 2026 · accessnewswire.com
TORONTO, ON / ACCESS Newswire / May 13, 2026 / Retained executive search firm Caldwell (TSX:CWL)(OTCQX:CWLPF) today announced the relaunch of Canada's Top 40 Under 40® Award Program, renewing its commitment to recognizing the country's most outstanding young leaders. Caldwell is pleased to be working with Presenting Partner Tourmaline Oil Corp., National Sponsor Deloitte Canada, Travel Sponsor Air Canada, Media Sponsor Financial Post, Event Sponsor Ewing Morris & Co., and Referencing Sponsor Inline Reference Check.
- CALDWELL ANNOUNCES RELAUNCH OF CANADA'S TOP 40 UNDER 40(R) AWARD PROGRAM
May 13, 2026
TORONTO, ON / ACCESS NEWSWIRE / MAY 13, 2026 / RETAINED EXECUTIVE SEARCH FIRM CALDWELL (TSX:CWL)(OTCQX:CWLPF) TODAY ANNOUNCED THE RELAUNCH OF CANADA'S TOP 40 UNDER 40® AWARD PROGRAM, RENEWING ITS COMMITMENT TO RECOGNIZING THE COUNTRY'S MOST OUTSTANDING YOUNG LEADERS. CALDWELL IS PLEASED TO BE WORKING WITH PRESENTING PARTNER TOURMALINE OIL CORP., NATIONAL SPONSOR DELOITTE CANADA, TRAVEL SPONSOR AIR CANADA, MEDIA SPONSOR FINANCIAL POST, EVENT SPONSOR EWING MORRIS & CO., AND REFERENCING SPONSOR INLINE REFERENCE CHECK.
- Tenon(R) Medical Reports First Quarter 2026 Financial Results
May 12, 2026 · accessnewswire.com
~ First Quarter 2026 Revenue of $1.4 Million, an Increase of Approximately 90% Compared to Prior Year ~ ~ First Quarter Gross Profit of $0.9 Million, an Increase of Approximately 193% Compared to Prior Year ~ ~ Gross Margin Expanded Approximately 24 Percentage Points Year-Over-Year to 68.5% ~ ~ Closed $4.3 Million Senior Convertible Note Private Placement to Fund Commercial Expansion and Product Development ~ ~ Subsequent to Quarter End The Company Opened a new Center of Excellence Training Center in Tampa, FL, Along with Expansion of the Company's Sales Leadership Throughout the Eastern Region~ LOS GATOS, CA / ACCESS Newswire / May 12, 2026 / Tenon Medical, Inc. (NASDAQ:TNON) ("Tenon Medical" or the "Company"), a company redefining care for patients suffering from sacro-pelvic disorders, today reported financial results for the first quarter ended March 31, 2026. Financial Results and Business Updates First Quarter 2026 Results: First quarter revenue of $1.4 million, an increase of approximately 90% compared to $0.7 million in the first quarter of 2025.
- TENON(R) MEDICAL REPORTS FIRST QUARTER 2026 FINANCIAL RESULTS
May 12, 2026
~ FIRST QUARTER 2026 REVENUE OF $1.4 MILLION, AN INCREASE OF APPROXIMATELY 90% COMPARED TO PRIOR YEAR ~ ~ FIRST QUARTER GROSS PROFIT OF $0.9 MILLION, AN INCREASE OF APPROXIMATELY 193% COMPARED TO PRIOR YEAR ~ ~ GROSS MARGIN EXPANDED APPROXIMATELY 24 PERCENTAGE POINTS YEAR-OVER-YEAR TO 68.5% ~ ~ CLOSED $4.3 MILLION SENIOR CONVERTIBLE NOTE PRIVATE PLACEMENT TO FUND COMMERCIAL EXPANSION AND PRODUCT DEVELOPMENT ~ ~ SUBSEQUENT TO QUARTER END THE COMPANY OPENED A NEW CENTER OF EXCELLENCE TRAINING CENTER IN TAMPA, FL, ALONG WITH EXPANSION OF THE COMPANY'S SALES LEADERSHIP THROUGHOUT THE EASTERN REGION~ LOS GATOS, CA / ACCESS NEWSWIRE / MAY 12, 2026 / TENON MEDICAL, INC. (NASDAQ:TNON) ("TENON MEDICAL" OR THE "COMPANY"), A COMPANY REDEFINING CARE FOR PATIENTS SUFFERING FROM SACRO-PELVIC DISORDERS, TODAY REPORTED FINANCIAL RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 2026. FINANCIAL RESULTS AND BUSINESS UPDATES FIRST QUARTER 2026 RESULTS: FIRST QUARTER REVENUE OF $1.4 MILLION, AN INCREASE OF APPROXIMATELY 90% COMPARED TO $0.7 MILLION IN THE FIRST QUARTER OF 2025.
- Ryder System, Inc. (R) Presents at Bank of America 33rd Annual Industrials, Transportation and Airlines Key Leaders Conference Transcript
May 12, 2026 · seekingalpha.com
Ryder System, Inc. (R) Presents at Bank of America 33rd Annual Industrials, Transportation and Airlines Key Leaders Conference Transcript
- BioInvent's TNFR2 Antibody BI-1808 Shows Strong Activity and Immune Activation as Single Agent and in Combination with KEYTRUDA(R) (pembrolizumab) in Advanced CTCL (EHA 2026)
May 12, 2026 · accessnewswire.com
40% objective response rate ( ORR) as single agent in heavily pre - treated patients with advanced Cutaneous T-Cell Lymphoma (CTCL) Durable responses observed, including a complete response lasting over two years and ongoing 50% ORR in combination with KEYTRUDA® (pembrolizumab) Targeting TNFR2 drove robust immune activation, with depletion of regulatory T cells and increased CD8+ T cell infiltration in skin lesions Early immune - related skin reactions - "flares"- correlated with biological activity and immune remodeling Favorable safety profile with mostly mild to moderate treatment - related adverse events LUND, SE / ACCESS Newswire / May 12, 2026 / BioInvent International AB ("BioInvent") (Nasdaq Stockholm:BINV)(STO:BINV), a leader in the discovery of novel immune-modulatory antibodies, today announced that new clinical data from its ongoing Phase 2a trial evaluating BI-1808, its novel anti-TNFR2 monoclonal antibody, in patients with advanced CTCL will be presented at the upcoming European Hematology Association (EHA) 2026 Congress in Stockholm, Sweden. The data underscore BI-1808's potential as both a single agent and combination therapy in this difficult-to-treat cancer with limited therapeutic options.
