New Lifetime High Reached: Old Dominion Freight Lines (ODFL)

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 $20.8 million.
  • ODFL has traded 552,885 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 22.9. 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 604,600 shares per day over the past 30 days. Old Dominion Freight Lines has a market cap of $4.5 billion and is part of the services sector and transportation industry. The stock has a beta of 1.33 and a short float of 1.1% with 1.84 days to cover. Shares are down 0.3% 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, impressive record of earnings per share growth, good cash flow from operations and solid stock price performance. 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 2.9%. Since the same quarter one year prior, revenues rose by 12.0%. 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 0.17 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 1.16, which illustrates the ability to avoid short-term cash problems.
  • OLD DOMINION FREIGHT has improved earnings per share by 18.6% 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 ($2.44 versus $1.96).
  • Net operating cash flow has increased to $99.52 million or 27.07% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 4.70%.
  • 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 47.00% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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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