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Ryder Is A Good Value

While Ryder System (NYSE:R) has rallied 21% this year, shares of the trucker have been on a pit-stop since April, hovering around the $60 level (see the chart below). During this period, the company has continued to operate strongly, and I feel more confident about its prospects in 2014 and beyond. Now trading at 11x next year's earnings with a growing dividend, I believe Ryder offers investors a good risk/reward profile.

(click to enlarge)

Trucking companies are obviously very levered to the strength of the broader economy. When consumption goes down, there is no demand for shipping and truckers are disproportionately hurt while the converse is true during economic upswings. Our current pace of roughly 2% GDP is...

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