/Old%20Dominion%20Freight%20Line%2C%20Inc_%20outside%20sign-by%20Jonathan%20Weiss%20via%20Shutterstock.jpg)
Valued at a market cap of $43.7 billion, Old Dominion Freight Line, Inc. (ODFL) operates as a less-than-truckload motor carrier in the United States and North America. The Thomasville, North Carolina-based company offers regional, inter-regional, and national less-than-truckload services, as well as expedited transportation. It also provides various value-added services, including container drayage, truckload brokerage, and supply chain consulting.
Companies worth $10 billion or more are generally described as “large-cap” stocks, and ODFL fits right into that category with its market cap exceeding this threshold, reflecting its substantial size, stability, and influence in the trucking industry. The company operates more than 52,000 tractors and trailers for cargo transportation and is known for its premium service, on-time delivery, and commitment to sustainability.
ODFL is currently trading 12.2% below its 52-week high of $233.26, reached on Nov. 1. Shares of this truckload shipping company gained nearly 8.5% over the past three months, slightly outpacing the Dow Jones Industrials Average’s ($DOWI) 8% returns during the same time frame.
However, In the longer term, ODFL has gained 8.1% over the past 52 weeks, lagging behind DOWI’s 21.3% returns. Moreover, shares of ODFL are up 1.1% on a YTD basis, massively underperforming DOWI’s 17.1% gains over the same time frame.
To confirm its bearish trend, ODFL has been trading below its 50-day moving average since early December. However, it has remained above its 200-day moving average since late October.
On Oct. 23, shares of ODFL fell nearly 5.5% after its weak Q3 earnings release. The company’s revenue of $1.47 billion declined 3% annually while its net income plunged 9.1% on a yearly basis, totaling $308.6 million. Revenues declined primarily due to a 4.8% drop in LTL tonnes per day brought on by the ongoing softness in the domestic economy.
ODFL’s underperformance looks even more pronounced when compared to its rival, Saia, Inc. (SAIA), which gained 31.2% over the past 52 weeks and 19% on a YTD basis.
Despite ODFL’s recent outperformance, analysts remain cautious about its prospects. The stock has a consensus rating of “Hold” from the 20 analysts covering it. As of writing, the stock is trading above its mean price target of $201.31.
