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Trade-Ideas LLC identified

Old Dominion Freight Lines

(

ODFL

) as a weak on high relative volume 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 $33.0 million.
  • ODFL has traded 82,875 shares today.
  • ODFL is trading at 3.45 times the normal volume for the stock at this time of day.
  • ODFL is trading at a new low 3.01% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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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 the United States and 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 18. Currently there are 3 analysts that rate Old Dominion Freight Lines a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Old Dominion Freight Lines has been 637,000 shares per day over the past 30 days. Old Dominion Freight Lines has a market cap of $5.4 billion and is part of the services sector and transportation industry. The stock has a beta of 1.07 and a short float of 7.5% with 7.45 days to cover. Shares are up 7.5% 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 and largely solid financial position with reasonable debt levels by most measures. 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 15.2%. Since the same quarter one year prior, revenues slightly increased by 1.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • ODFL's debt-to-equity ratio is very low at 0.07 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 1.00, which illustrates the ability to avoid short-term cash problems.
  • OLD DOMINION FREIGHT' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, OLD DOMINION FREIGHT increased its bottom line by earning $3.57 versus $3.10 in the prior year. This year, the market expects an improvement in earnings ($3.60 versus $3.57).
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and the Road & Rail industry average. The net income has decreased by 3.6% when compared to the same quarter one year ago, dropping from $62.52 million to $60.29 million.
  • Net operating cash flow has declined marginally to $168.39 million or 2.43% when compared to the same quarter last year. Despite a decrease in cash flow of 2.43%, OLD DOMINION FREIGHT is in line with the industry average cash flow growth rate of -4.28%.

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