We recently issued an updated report on Old Dominion Freight Line, Inc. (ODFL - Free Report) .
The sluggish freight environment is a major concern for the company. As an evidence, LTL tonnage declined 4.4% in 2019 from 2018 levels. The metric declined 4.4% year over year in the first nine months of 2020. The adversity is due to lower volumes on account of soft freight demand. LTL shipments slipped 7.8% in the first nine months of 2020.
Effect of coronavirus on second-quarter results were more severe than the first. In the third quarter too, LTL service revenues were weak. Revenues in the segment declined 5.1% in the first nine months of 2020. With the health peril still very much present, the company's fourth-quarter results may be adversely impacted too.
Meanwhile, Old Dominion's efforts to reduce debt levels are quite encouraging. The company's total debt was around $250 million in 2008. This has been lowered to $99.9 million at the end of third-quarter 2020.
Additionally, the company’s cash and cash equivalents at the end of the third quarter stood at $626 million, way above the current maturities of long-term debt figure of $45 million, implying that the company has sufficient cash to meet its current debt obligations.
Zacks Rank & Stocks to Consider
Old Dominion currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Transportation sector are Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , Landstar System, Inc. (LSTR - Free Report) and Herc Holdings Inc. (HRI - Free Report) . Landstar and Knight-Swift carry a Zacks Rank #2 (Buy), while Herc Holdings sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, Landstar and Herc Holdings is pegged at 15%, 12% and 12.6%, respectively.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
We recently issued an updated report on Old Dominion Freight Line, Inc. (ODFL - Free Report) .
The sluggish freight environment is a major concern for the company. As an evidence, LTL tonnage declined 4.4% in 2019 from 2018 levels. The metric declined 4.4% year over year in the first nine months of 2020. The adversity is due to lower volumes on account of soft freight demand. LTL shipments slipped 7.8% in the first nine months of 2020.
Effect of coronavirus on second-quarter results were more severe than the first. In the third quarter too, LTL service revenues were weak. Revenues in the segment declined 5.1% in the first nine months of 2020. With the health peril still very much present, the company's fourth-quarter results may be adversely impacted too.
Meanwhile, Old Dominion's efforts to reduce debt levels are quite encouraging. The company's total debt was around $250 million in 2008. This has been lowered to $99.9 million at the end of third-quarter 2020.
Additionally, the company’s cash and cash equivalents at the end of the third quarter stood at $626 million, way above the current maturities of long-term debt figure of $45 million, implying that the company has sufficient cash to meet its current debt obligations.
Zacks Rank & Stocks to Consider
Old Dominion currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Transportation sector are Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , Landstar System, Inc. (LSTR - Free Report) and Herc Holdings Inc. (HRI - Free Report) . Landstar and Knight-Swift carry a Zacks Rank #2 (Buy), while Herc Holdings sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, Landstar and Herc Holdings is pegged at 15%, 12% and 12.6%, respectively.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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