We recently issued an updated report on Old Dominion Freight Line, Inc. (ODFL - Free Report) .
Old Dominion’s liquidity position is impressive. The company exited the first quarter with cash and cash equivalents of $357 million, way above the current debt of $45 million. This indicates that the company has sufficient cash to meet its current debt obligations.
Moreover, efforts to reward shareholders through dividends and share buybacks are also impressive. In May, Old Dominion Freight board approved a quarterly cash dividend of 15 cents per share. The dividend reflects a three-for-two stock split, approved by the board on Feb 21. This means that one additional share was issued for every two shares of common stock. The additional shares were distributed on Mar 24 at an adjusted price of $150.48.
In first quarter 2020, the company rewarded its shareholders with $196.6 million in first-quarter 2020 through buybacks ($178.3 million) and dividends ($18.3 million).
Nevertheless, sluggish freight environment due to COVID -19 issues is a major concern for Old Dominion. The adversity is due to lower volumes on account of soft freight demand. In first-quarter 2020, LTL tonnage declined 2.4%. The impact is likely to magnify in second-quarter 2020 as supply chain disruptions aggravate. This will dent the company's growth prospects.
Zacks Rank & Key Picks
Old Dominion currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Transportation sector are Canadian Pacific Railway Limited (CP - Free Report) , TFI International (TFII - Free Report) and Teekay Tankers Ltd. (TNK - Free Report) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings (three to five years) growth rate for Canadian Pacific, TFI International and Teekay Tankers is estimated at 7.5%, 4.1% and 3%, respectively
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We recently issued an updated report on Old Dominion Freight Line, Inc. (ODFL - Free Report) .
Old Dominion’s liquidity position is impressive. The company exited the first quarter with cash and cash equivalents of $357 million, way above the current debt of $45 million. This indicates that the company has sufficient cash to meet its current debt obligations.
Moreover, efforts to reward shareholders through dividends and share buybacks are also impressive. In May, Old Dominion Freight board approved a quarterly cash dividend of 15 cents per share. The dividend reflects a three-for-two stock split, approved by the board on Feb 21. This means that one additional share was issued for every two shares of common stock. The additional shares were distributed on Mar 24 at an adjusted price of $150.48.
In first quarter 2020, the company rewarded its shareholders with $196.6 million in first-quarter 2020 through buybacks ($178.3 million) and dividends ($18.3 million).
Nevertheless, sluggish freight environment due to COVID -19 issues is a major concern for Old Dominion. The adversity is due to lower volumes on account of soft freight demand. In first-quarter 2020, LTL tonnage declined 2.4%. The impact is likely to magnify in second-quarter 2020 as supply chain disruptions aggravate. This will dent the company's growth prospects.
Zacks Rank & Key Picks
Old Dominion currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Transportation sector are Canadian Pacific Railway Limited (CP - Free Report) , TFI International (TFII - Free Report) and Teekay Tankers Ltd. (TNK - Free Report) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings (three to five years) growth rate for Canadian Pacific, TFI International and Teekay Tankers is estimated at 7.5%, 4.1% and 3%, respectively
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>
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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