A key resistance level has emerged in the chart of Old Dominion Freight Line (ODFL). If this level is surpassed a breakout could occur…
Old Dominion Freight Line (ODFL) is the third- largest less-than-truckload carrier in the United States, with more than 235 service centers and 9,200-plus tractors. It also offers value-added services such as container drayage, supply chain consulting, and truckload brokerage.
ODFL is a fast-growing company that has increased its market share through organic growth. The company had a strong fourth quarter with earnings up 34.2%. ODFL also established a new record for their cargo claims ratio at 0.1%.
The company opened eight new facilities last year, one in January, and plans to open two to three additional locations in this quarter, which increase the overall average capacity within their network.
ODFL has a strong balance sheet with $401.4 million in cash and cash equivalents at the end of the year. This compares with only $99.9 million in long-term debt. The company is also profitable with a return on equity of 19.8%.
Revenues are expected to grow 10.5% this quarter and 28.6% next quarter. Earnings are forecasted to rise 39.6 this quarter and 48.8% next quarter. The stock does have a high valuation, with a P/E of 36.9, but that’s less than the industry average and the S&P 500.
The stock has shown positive near, mid, and long-term momentum and also has a grade of B, or Buy rating in our POWR Ratings system.
Take a look at the 1-year chart of ODFL below with added notations…
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