Do Wall Street Analysts Like Old Dominion Freight Line Stock?

Thomasville, North Carolina-based Old Dominion Freight Line, Inc. (ODFL) is one of the largest North American less-than-truckload (LTL) motor carriers and provides regional, inter-regional and national LTL services. With a market cap of $46 billion, Old Dominion’s offerings also include various value-added services, including container drayage, truckload brokerage, and supply chain consulting.

The LTL giant has lagged behind the broader market over the past year. ODFL stock prices have gained 6.4% on a YTD basis and 7.1% over the past year, underperforming the S&P 500 Index’s ($SPX) 23.1% gains in 2024 and 30.4% returns over the past 52-week period.

Narrowing the focus, ODFL has also underperformed the SPDR S&P Transportation ETF’s (XTN) 9.7% gains on a YTD basis and 24.6% returns over the past year.

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Shares of Old Dominion Freight Line plunged 5.5% after the release of its disappointing Q3 earnings on Oct. 23. Due to the ongoing softness in the domestic economy, the company reported a drop in revenues and earnings. Its total revenue of $1.5 billion, reflected a 3% decline compared to the year-ago quarter and missed Wall Street’s topline forecasts by 2.8%, primarily driven by the 4.8% decrease in LTL tons per day which was partially offset by a 1.5% increase in LTL revenue per hundredweight. Moreover, its net income declined 9.1% year-over-year to $308.6 million due to an increase in overall operating expenses as a percentage of revenues.

On a positive note, ODFL’s EPS of $1.43 matched analysts’ expectations and the company has maintained consistency in its market share and yield performance supported by its best-in-class service, providing customers with 99% on-time service and a cargo claims ratio of 0.1% during the quarter.

For the current fiscal year, ending in December, analysts expect ODFL to report a 3.6% year-over-year drop in EPS to $5.43. However, the company has a robust earnings surprise history. It has surpassed or matched analysts’ bottom-line estimates in each of the past four quarters.

ODFL stock has a consensus “Hold” rating overall. Out of the 20 analysts covering the stock, three recommend “Strong Buy,” one advises “Moderate Buy,” 14 suggest “Hold,” and two advocate a “Strong Sell” rating.

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This configuration is less bullish compared to a month ago, when five analysts recommended a “Strong Buy” rating.

On Nov. 13, Barclays PLC (BCS) analyst Eric Morgan kept an “Equal Weight” rating and raised the price target on ODFL to $220.

Although ODFL is trading above its mean price target of $197.05, the Street-high target of $241 suggests a potential upside of 11.8% to current price levels.

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On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.