Is Outdated Dominion Freight Line Underperforming the S&P 500?

Thomasville, North Carolina-based Outdated Dominion Freight Line, Inc. (ODFL) is without doubt one of the largest North American less-than-truckload (LTL) motor carriers and gives regional, inter-regional, and nationwide LTL companies. With a market cap of $31.2 billion, Outdated Dominion’s choices additionally embody numerous value-added companies, together with container drayage, truckload brokerage, and provide chain consulting.

Corporations price $10 billion or extra are typically described as “large-cap shares.” Outdated Dominion matches proper into that class, with its market cap exceeding this threshold, reflecting its substantial measurement, affect, and dominance within the logistics trade.

Regardless of its notable strengths, ODFL inventory has plunged 37.3% from its all-time excessive of $233.26 touched on Nov. 11, 2024. In the meantime, ODFL has dropped 12.9% over the previous three months, notably underperforming the S&P 500 Index’s ($SPX) 8.2% beneficial properties throughout the identical timeframe.

Outdated Dominion’s efficiency has remained grim over the long run as effectively. ODFL inventory has plunged 17.1% on a YTD foundation and 23.5% over the previous 52 weeks, outperforming SPX’s 11.1% surge in 2025 and 18.9% returns over the previous 52 weeks.

ODFL inventory has traded persistently beneath its 200-day transferring common since late February and beneath its 50-day transferring common since late July, highlighting its bearish pattern.

Outdated Dominion’s inventory costs plunged practically 9.7% in a single buying and selling session following the discharge of its lackluster Q2 outcomes on Jul. 30. Because of continued macroeconomic headwinds and softness within the broader financial system, the corporate’s LTL tons per day decreased by 9.3% in the course of the quarter. This resulted in a 6.1% year-over-year drop in whole revenues to $1.4 billion, lacking the consensus estimates by 55 bps. Additional, the drop in revenues led to deleveraging results on margin. ODFL’s EPS for the quarter plunged 14.2% year-over-year to $1.27, lacking the consensus estimates by 1.6%.

In the meantime, ODFL has considerably underperformed its peer, XPO, Inc.’s (XPO) 66 bps decline on a YTD foundation and 28.7% surge over the previous 52 weeks.

Among the many 23 analysts masking the ODFL inventory, the consensus ranking is a “Maintain.” Its imply worth goal of $162.19 suggests a ten.9% upside potential from present worth ranges.

On the date of publication, Aditya Sarawgi didn’t have (both instantly or not directly) positions in any of the securities talked about on this article. All data and information on this article is solely for informational functions. This text was initially printed on Barchart.com