NEW YORK (TheStreet) -- Shares of Old Dominion Freight Line (ODFL) were unchanged in pre-market trading Wednesday even though Credit Suisse (CS) increased its price target on the stock to $74 and increased its estimates.
The firm kept its "outperform" rating and cited management's continued guidance boost as the reason for the increases.
Separately, TheStreet Ratings team rates OLD DOMINION FREIGHT as a "buy" with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate OLD DOMINION FREIGHT (ODFL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. 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, compelling growth in net income and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 8.8%. Since the same quarter one year prior, revenues rose by 19.1%. 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 0.15 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 1.10, which illustrates the ability to avoid short-term cash problems.
- OLD DOMINION FREIGHT has improved earnings per share by 26.5% 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 $2.40 versus $1.96 in the prior year. This year, the market expects an improvement in earnings ($2.94 versus $2.40).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Road & Rail industry average. The net income increased by 26.8% when compared to the same quarter one year prior, rising from $58.26 million to $73.85 million.
- Powered by its strong earnings growth of 26.47% and other important driving factors, this stock has surged by 51.90% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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.
- You can view the full analysis from the report here: ODFL Ratings Report
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.