Trade-Ideas: Old Dominion Freight Lines (ODFL) Is Today's New Lifetime High Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Old Dominion Freight Lines ( ODFL) as a new lifetime high 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 $16.0 million.
  • ODFL has traded 298,414 shares today.
  • ODFL is trading at a new lifetime high.

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More details on ODFL:

Old Dominion Freight Line, Inc. operates as a less-than-truckload (LTL) motor carrier primarily in the United States and North America. It provides regional, inter-regional, and national LTL services. ODFL has a PE ratio of 20.4. Currently there are 7 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 589,900 shares per day over the past 30 days. Old Dominion Freight Lines has a market cap of $3.9 billion and is part of the services sector and transportation industry. The stock has a beta of 1.31 and a short float of 0.9% with 1.67 days to cover. Shares are up 31.1% year to date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • ODFL's revenue growth has slightly outpaced the industry average of 2.7%. Since the same quarter one year prior, revenues slightly increased by 7.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ODFL's debt-to-equity ratio is very low at 0.20 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 1.02, which illustrates the ability to avoid short-term cash problems.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 47.97% over the past year, a rise that has exceeded that of the S&P 500 Index. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • OLD DOMINION FREIGHT has improved earnings per share by 22.9% 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 $1.96 versus $1.62 in the prior year. This year, the market expects an improvement in earnings ($2.41 versus $1.96).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Road & Rail industry average. The net income increased by 21.8% when compared to the same quarter one year prior, going from $47.83 million to $58.26 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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