Old Dominion Freight Delivers Its Weight

NEW YORK (TheStreet) -- I've said it before and I'll say it again, 2013 has been the year of domestic stocks. Small- and mid-cap domestic stocks are the hottest places to be in the market this year -- for whatever reason.

Why? Sometimes, you just need to shut up and stop asking questions and go where the fish are biting!

This stuff can defy logic, but who cares, if you're filling your sack with profits this year? Who cares, if you're going against conventional wisdom, computer models, etc.? Either way, you're putting fish in your sack!

And they are good-tasting fish, too; they are going to come in handy somewhere down the road -- when you retire or need to live off the income.

Here are my top eight-ranked asset classes from amongst the 45 that I track on a daily basis:

Data from Best Stocks Now App

Again, 2013 has been all about stocks. It has also been all about domestic stocks. It has also been all about small and mid-cap stocks. I have had no exposure to the bond market, the precious metals market, or emerging markets.

This has helped my returns tremendously this year. Being out of the wrong areas of the market is as important as being in the right areas.

For this reason, I am not an asset allocator. I believe in being in the best asset classes now, not the worst ones. This takes some extra work on my part, but it is well worth it.

Let me throw you a stock. A stock like Old Dominion Freight Line ( ODFL), another Best Stock Now! ODFL is a $3.9 billion mid cap, headquartered in Thomasville, N.C., with a better track record than the Carolina Panthers. Sorry, Cam Newton.

Data from Best Stocks Now App

Performance

Driving ODFL's performance all the while, we have management. How has the management at ODFL done over the years for its shareholders?

Data from Best Stocks Now AppOver the last 10 years, shareholders have received returns of about 21% each year on their investment in this trucker. Over the last five years, shareholders have received 25% per year, while the market has only delivered 7%. Over the last three years, ODFL has been trucking along at 39% per year. And over the last 12 months, ODFL is up 48%, while the market is only up 16%.

ODFL gets a performance grade of A. The jury is still out on the Panthers this year.

Valuation

Now we move onto valuation because valuation is critical. This is my problem with Tesla ( TSLA). Tesla may have performance, but its valuation when compared against Ford, GM, Toyota, Honda, etc... well, it's rather astronomical! I'll allow you to do that comparison and ask yourself if you feel comfortable with the valuation of the shares.

Data from Best Stocks Now App

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!

Stock Chart

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.

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