Riding Ryder System, Inc. (R) to a Better Economy

J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) had some very negative hedge fund sentiment at the end of 2012. Going into 2013, there were 11 hedge funds owning the stock, which was a decrease 27% from one quarter earlier.

Hub Group is a full-service transportation provider, offering comprehensive logistics services, while Knight Transportation (NYSE:KNX) is a short-to-medium haul in the western region of the U.S. Knight Transportation (NYSE:KNX) is working on cost controls and fuel-efficiency measures to hedge low single-digit increases in both core pricing and mileage in its truckload unit. Meanwhile, margins may likely also be compressed due to the further build-out of its drayage and refrigerated operations. The company is also looking to increase its presence in non-asset services like brokerage and rail intermodal.

As far as hedge fund interest goes, unlike its major peers Ryder System, Inc. (NYSE:R) and J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT), the sentiment was positive for Knight going into 2013. At the end of 2012, there were 12 hedge funds long the stock, a 9% increase from the previous quarter. The most notable hedge fund owners include Vinik Asset Management and billionaire Jim Simons’ Renaissance Technologies (check out Simons’ top stock picks).

By the numbers

Not only is Ryder a great growth stock, it is still very cheap.

Ryder also has industry top EBITDA margins.

Don’t be fooled

The article Riding Ryder to a Better Economy originally appeared on Fool.com and is written by Marshall Hargrave.

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