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Momentum

Old Dominion Freight Line, Inc. (ODFL - Snapshot Report) has been on a roll for the last few months, recently hitting a new all-time high after jumping more than 50% since October. With another good quarter in hand and a solid 14% growth projection, this Zacks #1 Rank stock is the right carrier for momentum.

Company Description

Old Dominion Freight Line, Inc. operates as a "less-than-truckload" motor carrier primarily in the United States, providing regional and national services. The company was founded in 1934 and has a market cap of $1.34 billion.

With the domestic economy holding up fairly well amongst uncertainty over Europe and China, shipping stocks have fallen back in favor. That and strong Q3 results from late October have ODFL trading at an all-time high.

Third-Quarter Results

Revenue for the period was up 25% from last year to $496 million. Earnings also came in strong at 67 cents, 5% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 16% over the last four quarters.

Financial Profile

Old Dominion exited the quarter with cash and short-term investments of $42 million, up from $5 million last year, while total debt held mostly steady at $264 million.

Estimates

We saw some decent movement in estimates off the good quarter, with the current year up 7 cents to $2.31. The next-year estimate is pegged at $2.65, a solid 15% growth projection.

Valuation

With a PEG ratio of 1.2, ODFL trades at a slight premium to the benchmark of 1 for value.

12-Month Chart

On the chart, ODFL has seen big gains over the last few months, climbing more than 50% to hit a new all-time high. Take a look below.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Whisper Trader Service.

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