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Trade-Ideas LLC identified

Old Dominion Freight Lines

(

ODFL

) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Old Dominion Freight Lines as such a stock due to the following factors:

  • ODFL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $58.7 million.
  • ODFL has traded 88,874 shares today.
  • ODFL traded in a range 214.3% of the normal price range with a price range of $4.68.
  • ODFL traded above its daily resistance level (quality: 28 days, meaning that the stock is crossing a resistance level set by the last 28 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on ODFL:

TheStreet Recommends

Old Dominion Freight Line, Inc. operates as a less-than-truckload (LTL) motor carrier in North America. It provides regional, inter-regional, and national LTL services, including ground and air expedited transportation, and consumer household pickup and delivery. ODFL has a PE ratio of 16. Currently there are 4 analysts that rate Old Dominion Freight Lines a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Old Dominion Freight Lines has been 795,800 shares per day over the past 30 days. Old Dominion Freight Lines has a market cap of $4.7 billion and is part of the services sector and transportation industry. The stock has a beta of 1.12 and a short float of 7.3% with 5.01 days to cover. Shares are down 6.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Old Dominion Freight Lines as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 17.6%. Since the same quarter one year prior, revenues slightly increased by 4.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • ODFL's debt-to-equity ratio is very low at 0.11 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.01, which illustrates the ability to avoid short-term cash problems.
  • OLD DOMINION FREIGHT has improved earnings per share by 10.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, OLD DOMINION FREIGHT increased its bottom line by earning $3.10 versus $2.40 in the prior year. This year, the market expects an improvement in earnings ($3.57 versus $3.10).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Road & Rail industry. The net income increased by 8.3% when compared to the same quarter one year prior, going from $77.91 million to $84.37 million.
  • Net operating cash flow has increased to $118.05 million or 22.53% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -12.91%.

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