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Old Dominion (ODFL) Posts November Update for LTL Segment

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Old Dominion Freight Line, Inc. (ODFL - Free Report) issued an update on the performance of its less-than-truckload (LTL) segment, the major revenue driver.

LTL revenue per day increased 6.3% year over year in November owing to 5.2% increase in LTL tons per day and an increase in LTL revenue per hundredweight. Rise in LTL tons per day was attributable to 2.6% increase in LTL weight per shipment and 2.5% increase in LTL shipments per day.

On a quarter-to-date basis, LTL revenue per hundredweight and LTL revenue per hundredweight excluding fuel surcharges rose 0.5% and 3.8%, respectively.

Notably, Old Dominion’s revenue increase in November can be attributable to both increase in volumes & yield. As an evidence, LTL tonnage increase reflects the additional demand and improvement in the domestic economy as the freight scene improves amid the pandemic woes.

Despite the recent improvements, freight demand is below year-ago levels. As an evidence, LTL shipments were down 3.1% in the September quarter.

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 carries a Zacks Rank #2 (Buy), while Knight-Swift and Herc Holdings sport 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.

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