September 21, 2012
Written By Dr. Sam Subramanian
“Old Dominion Freight Line (ODFL, $30) is outshining its less-than-truckload (LTL) peers. While most LTL carriers reported lower tonnage in the June quarter, Old Dominion reported a 9% increase. The seventh-largest LTL carrier is working to increase market share and operating leverage by building its network. Confident of its future, the company has approved a three-for-two stock split, the fifth split in about nine years.
“Appealing to risk-tolerant investors seeking growth at a reasonable price, ODFL shares trade at a low double-digit forward P/E versus prospects for EPS to increase 21% in 2012 and 13% in 2013. Buy Below $29.80. Sell Above $32.50. Stop Loss: $17.00. Risk Rating: Above Average.”
Sam Subramanian, PhD, AlphaProfit Sector Investors’ Newsletter, September 2012