Old Dominion Freight Line, Inc. (ODFL - Free Report) is benefiting from the strong performance of the less-than-truckload (LTL) segment. The company’s measures to reward its shareholders are encouraging.
Against this backdrop, let’s look at the factors that make this stock an attractive pick.
What Makes Old Dominion an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse over the past six months. Shares of Old Dominion have gained 29.5% over the past six months, outperforming the 14.9% rise of the industry it belongs to.
Solid Rank & VGM Score: Old Dominion currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions:The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Over the past 90 days, the Zacks Consensus Estimate for Old Dominion’s first-quarter 2023 earnings has moved up 3.4% year over year. For 2023 and 2024, the company’s earnings are expected to increase 4.1% and 3.4%, year over year, respectively.
Positive Earnings Surprise History: Old Dominion has an impressive earnings surprise history. The company delivered an earnings surprise of 8.73% in the last four quarters, on average.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For first-quarter 2023, Old Dominion’s earnings are expected to grow 4.2% year over year.
Growth Factors: Old Dominion is benefiting from the strong performance of the LTL segment owing to improved freight conditions. In 2022, segmental revenues increased 19.3%. In 2022, LTL shipments and LTL revenue per shipment increased 0.8% and 18.3%, respectively.
Further, ODFL’s efforts to add shareholder value are impressive. In 2022, ODFL paid dividends of $134.48 million and repurchased shares worth $1,277.21 million. ODFL’s board has raised its quarterly cash dividend by 33.3% to 40 cents per share, effective from the first quarter of 2023.
Improvement in the operating ratio (operating expenses as a percentage of revenues), owing to higher revenues, is encouraging. With improved freight market conditions, a rise in LTL shipments is driving the top line.
Other Stocks to Consider
Some other top-ranked stocks from the broader Zacks Transportation sector are Copa Holdings, S.A. (CPA - Free Report) , Alaska Air Group, Inc. (ALK - Free Report) and American Airlines (AAL - Free Report) . Copa Holdings presently sports a Zacks Rank #1, while Alaska Air and American Airlines currently carry a Zacks Rank #2.
Copa Holdings has an expected earnings growth rate of 39.83% for the current year. CPA delivered a trailing four-quarter earnings surprise of 33.35%, on average.
The Zacks Consensus Estimate for CPA’s current-year earnings has improved 21.1% over the past 90 days. Shares of CPA have soared 13.3% over the past three months.
Alaska Air has an expected earnings growth rate of 32.64% for the current year. ALK delivered a trailing four-quarter earnings surprise of 8.98%, on average.
The Zacks Consensus Estimate for ALK’s current-year earnings has improved 11.4% over the past 90 days. Shares of ALK have soared 0.8% over the past three months.
AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
The Zacks Consensus Estimate for AAL’s current-year earnings has improved 31.1% over the past 90 days. Shares of AAL have gained 15.8% over the past three months.
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Old Dominion Freight Line, Inc. (ODFL - Free Report) is benefiting from the strong performance of the less-than-truckload (LTL) segment. The company’s measures to reward its shareholders are encouraging.
Against this backdrop, let’s look at the factors that make this stock an attractive pick.
What Makes Old Dominion an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse over the past six months. Shares of Old Dominion have gained 29.5% over the past six months, outperforming the 14.9% rise of the industry it belongs to.
Solid Rank & VGM Score: Old Dominion currently carries a Zacks Rank #2 (Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions:The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Over the past 90 days, the Zacks Consensus Estimate for Old Dominion’s first-quarter 2023 earnings has moved up 3.4% year over year. For 2023 and 2024, the company’s earnings are expected to increase 4.1% and 3.4%, year over year, respectively.
Positive Earnings Surprise History: Old Dominion has an impressive earnings surprise history. The company delivered an earnings surprise of 8.73% in the last four quarters, on average.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For first-quarter 2023, Old Dominion’s earnings are expected to grow 4.2% year over year.
Growth Factors: Old Dominion is benefiting from the strong performance of the LTL segment owing to improved freight conditions. In 2022, segmental revenues increased 19.3%. In 2022, LTL shipments and LTL revenue per shipment increased 0.8% and 18.3%, respectively.
Further, ODFL’s efforts to add shareholder value are impressive. In 2022, ODFL paid dividends of $134.48 million and repurchased shares worth $1,277.21 million. ODFL’s board has raised its quarterly cash dividend by 33.3% to 40 cents per share, effective from the first quarter of 2023.
Improvement in the operating ratio (operating expenses as a percentage of revenues), owing to higher revenues, is encouraging. With improved freight market conditions, a rise in LTL shipments is driving the top line.
Other Stocks to Consider
Some other top-ranked stocks from the broader Zacks Transportation sector are Copa Holdings, S.A. (CPA - Free Report) , Alaska Air Group, Inc. (ALK - Free Report) and American Airlines (AAL - Free Report) . Copa Holdings presently sports a Zacks Rank #1, while Alaska Air and American Airlines currently carry a Zacks Rank #2.
Copa Holdings has an expected earnings growth rate of 39.83% for the current year. CPA delivered a trailing four-quarter earnings surprise of 33.35%, on average.
The Zacks Consensus Estimate for CPA’s current-year earnings has improved 21.1% over the past 90 days. Shares of CPA have soared 13.3% over the past three months.
Alaska Air has an expected earnings growth rate of 32.64% for the current year. ALK delivered a trailing four-quarter earnings surprise of 8.98%, on average.
The Zacks Consensus Estimate for ALK’s current-year earnings has improved 11.4% over the past 90 days. Shares of ALK have soared 0.8% over the past three months.
AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
The Zacks Consensus Estimate for AAL’s current-year earnings has improved 31.1% over the past 90 days. Shares of AAL have gained 15.8% over the past three months.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks<<
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