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Old Dominion Freight Line Inc. (ODFL - Free Report) is coming off of its sixth consecutive earnings surprises. Estimates are moving higher and valuations are looking good.

Taking a deeper look at this Zacks #1 Rank (Strong Buy) is well worth your time.

Company Description

Old Dominion is a national freight company that offers less-than-truckload services in 5 days or less. They load up a single truck with multiple orders and route them through delivery centers.

Well Ahead of Expectations

On Apr 27 Old Dominion reported a 33% jump in quarterly revenue to $423 million, $21 million better than analysts expected. Beating on the top line can be just as, if not more, important than beating on the bottom line.

Fortunately the company did both. Earnings per share came in at $0.38, which was 9 cents higher than the Zacks Consensus Estimate. Net income almost tripled, from $7.7 million a year ago to $21.6 million.

Estimates Move Higher

After the sixth consecutive earnings surprise, analysts kept raising their estimates. The Zacks Consensus Estimate for 2011 is up 21 cents, to $1.98 after 18 upward revisions.

Next year's projections are averaging $2.42, up 25 cents. Last year Old Dominion mad $1.35 per share, so the expected growth rates are now 46% and 23%, respectively.

And Shares are Cheap

You might not be climbing over people to get to its 19 times forward P/E ratio, but the expected growth puts the PEG at 0.8, a solid bargain. The P/S is 1.3 times and the shares are just under 3 times book value.

The Chart

Shares could be on the verge of a momentum-based buy signal as the MACD is about to cross over. With a solid earnings history, rising estimates and solid valuations, it is no wonder ODFL is a Zacks #1 Rank (Strong Buy).

Old Dominion Freight Line Inc. - ticker ODFL>

Bill Wilton is the Aggressive Growth Stock Strategist for He is also the Editor in charge of the Zacks Small Cap Trader service

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