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- 1 ODFL stock rallied 17.14% in a month and 29.28% YTD.
- 2 LTL stocks are leveraging Yellow Corp.’s bankruptcy rumors.
The Old Dominion Freight Line Inc. (NASDAQ: ODFL) operates as less-than-truckload (LTL) carriers in the U.S. and the ODFL stock has dropped by 1.60%. Similarly, the share price of other LTL companies like XPO Inc. (NYSE: XPO) fell by 0.42%, while Saia Inc. (NASDAQ: SAIA) tumbled by 1.27%. All of these companies are trading fairly because the rival Yellow Corp. (NASDAQ: YELL) will soon go bankrupt.
Old Dominion Freight Line Inc. (ODFL Stock) – Financial Analysis
LTL stocks would benefit from the exit of the Yellow Corp. as the turf would now be available for the others. XPO gained 14.8%, SAIA jumped 10.9%, and ODFL hiked by 12.81% weekly. A pandemic-era loan taken by the Yellow Corp. and its tussle with the International Brotherhood of Teamsters could spell its demise. Additionally, the company has a debt of around $500 million due in 2024.
Multiple hedge funds and institutional investors have altered their positions at the Old Dominion Freight Line Inc. Norges Bank bought a new stake worth $302 million in Q4, 2022, and The Bank of New York and Mellon Corp (NYSE: BK) hiked its position by 24.2% in Q1 2023, bringing its total worth to $744 million. Goldman Sachs Group Inc. boosted its position by 117.6%, bringing its worth to $195 Million. The increased interest by such investors is an indication of the future growth of the trucking company.
At press time, ODFL stock is trading at $369.75 with a drop of 1.60%. Previous close and open were at $375.75 and $377.07, respectively. The trailing twelve-month (ttm) price-to-earnings (P/E) ratio is 31.39, indicating a fair value. At the same time, the (ttm) earnings per share (EPS) is said to be $11.78.
The 52-week change is reported to be 4,274.96%. Analysts placed a 2.22 rating for HOLD and estimated a price target at $338 with an 8.6% downside. With an average volume of 813,108 shares, the market cap is currently $40.544 billion.
The last earnings were announced on April 26, 2023, where the reported revenue of $1.442 billion failed to beat the estimated figures of $1.483 billion by 2.74%. The subsequent earnings will be released on July 26, 2023, with revenue estimated to be $1.449 billion. On June 29, 2023, the company announced the release of its Q2 financial results before the opening bell on July 26, 2023.
As per March 2023 data, the revenue fell by 3.68% to $1.44 billion, and the (ttm) revenue came to $6.2 billion. The revenue per share (ttm) was reported at $55.79, and the quarterly revenue growth year over year (YoY) dropped by 3.70%.
The gross profit of ODFL (ttm) is $2.49 Billion, and the operating expenses gained 9.67% to $173.00 million. The operating margin swelled by 29.30%, and the profit margin by 21.96%. Additionally, the net profit margin dropped by 1.30% to 19.76, and the company’s net income fell by 4.91% to $285.04 million.
Old Dominion Freight Line Inc. (ODFL Stock) – Candle Exploration
There has been a sharp upward move around the $326.66 point, making it a crucial support. The current price is close to its 52-week high. The ascending trajectory of the EMA indicates strength in the price action, and the relative strength index (RSI) value of 71.22 indicates that the stock is in the overbought range and could face slight rejection. At least until the net earnings are reported, the share price is expected to consolidate in a narrow range.
Following the earnings report, if the price falls below the crucial support, it might have a tough time breaking S1. A negative report could pull the price down, creating new lows, but positive earnings could also help in the creation of new highs.
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets and stocks comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
