U.S. Markets closed

Old Dominion (ODFL) Lays Out Solid Update on LTL Segment

·2 min read

Old Dominion Freight Line, Inc. ODFL issued an update on the performance of its less-than-truckload (LTL) segment, the major revenue driver, in the month of May.

LTL tons per day increased 28.3% year over year in May owing to 32.6% increase in LTL shipments per day. Consequently, revenues per day rallied 47.6% in the month owing to rise in both LTL tons per day and LTL revenue per hundredweight.  

On a quarter-to-date basis, both LTL revenue per hundredweight and LTL revenue per hundredweight (excluding fuel surcharges) rose 15.3% and 11.1% on a year-over-year basis, respectively. Notably, strong performance in the first two months of second-quarter 2021 can be primarily attributed to increase in demand for Old Dominion’s services and the ongoing improvement from coronavirus in the domestic economy.

We believe that solid LTL performance in the initial two months of second quarter will continue in the third month. This is likely to get reflected in the top line for the June quarter.

Zacks Rank & Other Stocks to Consider

Old Dominion currently carries a Zacks Rank #2 (Buy).

Investors interested in the broader Zacks Transportation sector can also consider stocks like Landstar System, Inc. LSTR, Triton International Limited TRTN and Herc Holdings Inc. HRI. Herc Holdings and Landstar sport a Zacks Rank #1 (Strong Buy), while Triton carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term (three to five years) expected earnings per share growth rate for Landstar, Triton and Herc Holdings is projected at 12%, 10% and 42.9%, respectively.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>
 


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Old Dominion Freight Line, Inc. (ODFL) : Free Stock Analysis Report
 
Landstar System, Inc. (LSTR) : Free Stock Analysis Report
 
Herc Holdings Inc. (HRI) : Free Stock Analysis Report
 
Triton International Limited (TRTN) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.