Old Dominion Freight Line, Inc. (ODFL - Free Report) shares have surged 54.1% in the past year compared with the industry’s 44.1% increase.
Reasons for Surge
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 $99.94 million at the end of first-quarter 2021. Additionally, the company’s cash and cash equivalents at the end of the first quarter stood at $351.9 million, way above the debt load. Moreover, its current ratio (a measure of liquidity) increased to 2.38 at the end of the first quarter from 1.94 in the year-ago period. A high current ratio indicates that a company is able to meet short-term obligations.
Additionally, the company reported improvement in operating ratio of 2020. At the end of 2020, the metric stood at 77.4% compared with 80.1% at the end of 2019. Notably, lower the value of this metric the better. Continuing the trend, operating ratio improved 530 basis points to 76.1% in first-quarter 2021. The metric is likely to improve in the June quarter too, owing to higher revenues. Notably, improvement in freight conditions is a huge positive for the company.
Favorable Estimate Revisions
Driven by the above tailwinds, the Zacks Consensus Estimate for current-year earnings has increased 8.6% to $7.90 per share in the past 60 days.
Zacks Rank & Other Stocks to Consider
Old Dominion currently carries a Zacks Rank #2 (Buy).
Investors interested in the broader Zacks Transportation sector can also consider stocks like Landstar System, Inc. (LSTR - Free Report) , Triton International Limited and Herc Holdings Inc. (HRI - Free Report) . Herc Holdings sport a Zacks Rank #1 (Strong Buy), while Triton and Landstar carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term (three to five years) expected earnings per share growth rate for Landstar, Triton and Herc Holdings is projected at 12%, 10% and 42.9%, respectively.
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.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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 >>
Old Dominion Freight Line, Inc. (ODFL - Free Report) shares have surged 54.1% in the past year compared with the industry’s 44.1% increase.
Reasons for Surge
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 $99.94 million at the end of first-quarter 2021. Additionally, the company’s cash and cash equivalents at the end of the first quarter stood at $351.9 million, way above the debt load. Moreover, its current ratio (a measure of liquidity) increased to 2.38 at the end of the first quarter from 1.94 in the year-ago period. A high current ratio indicates that a company is able to meet short-term obligations.
Additionally, the company reported improvement in operating ratio of 2020. At the end of 2020, the metric stood at 77.4% compared with 80.1% at the end of 2019. Notably, lower the value of this metric the better. Continuing the trend, operating ratio improved 530 basis points to 76.1% in first-quarter 2021. The metric is likely to improve in the June quarter too, owing to higher revenues. Notably, improvement in freight conditions is a huge positive for the company.
Favorable Estimate Revisions
Driven by the above tailwinds, the Zacks Consensus Estimate for current-year earnings has increased 8.6% to $7.90 per share in the past 60 days.
Zacks Rank & Other Stocks to Consider
Old Dominion currently carries a Zacks Rank #2 (Buy).
Investors interested in the broader Zacks Transportation sector can also consider stocks like Landstar System, Inc. (LSTR - Free Report) , Triton International Limited and Herc Holdings Inc. (HRI - Free Report) . Herc Holdings sport a Zacks Rank #1 (Strong Buy), while Triton and Landstar carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term (three to five years) expected earnings per share growth rate for Landstar, Triton and Herc Holdings is projected at 12%, 10% and 42.9%, respectively.
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.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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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