ODFL is currently trading at 16.7 times forward earnings. It is expected to continue to grow its earnings by 23% per year over the next five years. ODFL is trading at a discount to its growth rate.
ODFL has a PEG ratio of 0.72. When I extrapolate out ODFL's earnings over the next five years, and apply an appropriate multiple, I come up with a five-year target price of $89 per share. ODFL is currently trading at only $46 per share. I give ODFL a value grade of A!
Last is that all important visual test before it goes off the line here and out to the consumers. Just the other day, ODFL broke out of about a three to four month consolidation and it has continued onto new all-time highs ever since!
Out of 3,547 stocks I have in my database, ODFL comes in at 57 and it is a stock that I own here in my aggressive growth accounts at Gunderson Capital Management. By the way, the aggressive growth portfolio in my newsletter is currently up more than 29% year to date.
Old Dominion is not a recommendation, just another good example of a Best Stock Now!
Data from Best Stocks Now App
At the time of publication, Gunderson was long ODFL.
This article was written by an independent contributor, separate from TheStreet's regular news coverage.