/Old%20Dominion%20Freight%20Line%2C%20Inc_%20outside%20sign-by%20Jonathan%20Weiss%20via%20Shutterstock.jpg)
Old Dominion Freight Line, Inc. (ODFL), headquartered in Thomasville, North Carolina, is a top North American less-than-truckload (LTL) motor carrier. Valued at a market cap of $41.5 billion, this giant dominates the less-than-truckload (LTL) market.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and the freight shipping major perfectly fits that description. With a vast network spanning the U.S. and strategic partnerships across North America, it has carved out a reputation for size and stability. As a large-cap stock, Old Dominion stands tall, representing not just freight shipping but a legacy of industry leadership and steady growth.
Despite its strengths, Old Dominion Freight Line is trading 16.1% below its 52-week high of $227.80, achieved on April 8. Moreover, ODFL stock has surged 11.7% over the past three months, underperforming the broader Nasdaq Composite’s ($NASX) marginal decline over the same time frame.
Over the long term, ODFL has plunged 5.7% on a YTD basis, and the shares have dropped 9.2% over the past 52 weeks. In comparison, the NASX has gained 13.4% in 2024 and 23.7% over the past year.
To confirm the bearish price trend, ODFL has been trading below its 50-day and 200-day moving averages recently.
On Sept. 5, shares of the freight carrier declined nearly 5% after the company unveiled its August 2024 financial forecasts. The report revealed a 5.2% drop in daily revenue compared to last year, driven by a 6.1% decline in LTL tons per day - the total weight of freight moved. While they charged more per hundredweight, the overall revenue still took a hit. CEO Marty Freeman pointed to a sluggish domestic economy and reduced fuel surcharge revenue as culprits behind the dip.
Rival XPO, Inc. (XPO) has outperformed ODFL. XPO stock has gained 41.7% over the past 52 weeks and is up 15.6% on a YTD basis.
Analysts are cautious about ODFL’s prospects. The stock has a consensus rating of “Hold” from the 19 analysts covering it, and the mean price target of $196.39 is a premium of 2.7% from the current price levels.
On the date of publication, Sristi Jayaswal 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.
