Back to top

Aggressive Growth

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Old Dominion Freight Line Inc. (ODFL - Snapshot Report) is coming off of its sixth consecutive earnings surprises. Estimates are moving higher and valuations are looking good.

Taking a deeper look at this Zacks #1 Rank (Strong Buy) is well worth your time.

Company Description

Old Dominion is a national freight company that offers less-than-truckload services in 5 days or less. They load up a single truck with multiple orders and route them through delivery centers.

Well Ahead of Expectations

On Apr 27 Old Dominion reported a 33% jump in quarterly revenue to $423 million, $21 million better than analysts expected. Beating on the top line can be just as, if not more, important than beating on the bottom line.

Fortunately the company did both. Earnings per share came in at $0.38, which was 9 cents higher than the Zacks Consensus Estimate. Net income almost tripled, from $7.7 million a year ago to $21.6 million.

Estimates Move Higher

After the sixth consecutive earnings surprise, analysts kept raising their estimates. The Zacks Consensus Estimate for 2011 is up 21 cents, to $1.98 after 18 upward revisions.

Next year's projections are averaging $2.42, up 25 cents. Last year Old Dominion mad $1.35 per share, so the expected growth rates are now 46% and 23%, respectively.

And Shares are Cheap

You might not be climbing over people to get to its 19 times forward P/E ratio, but the expected growth puts the PEG at 0.8, a solid bargain. The P/S is 1.3 times and the shares are just under 3 times book value.

The Chart

Shares could be on the verge of a momentum-based buy signal as the MACD is about to cross over. With a solid earnings history, rising estimates and solid valuations, it is no wonder ODFL is a Zacks #1 Rank (Strong Buy).

Old Dominion Freight Line Inc. - ticker ODFL>
 
 
<P ALIGN=

Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Small Cap Trader service

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOLD BITA 35.33 +14.82%
ANI PHARMACE ANIP 24.79 +14.66%
E HOUSECHINA EJ 10.99 +9.24%
CANADIAN SOL CSIQ 26.97 +7.15%
INTERNATIONA ICAGY 33.30 +5.38%