Yahoo Finance What Does Old Dominion Freight Line, Inc.'s (NASDAQ:ODFL) Share Price Indicate?
Let's talk about the popular Old Dominion Freight Line, Inc. (NASDAQ:ODFL). The company's shares received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$225 at one point, and dropping to the lows of US$169. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Old Dominion Freight Line's current trading price of US$169 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Old Dominion Freight Line’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for Old Dominion Freight Line
What Is Old Dominion Freight Line Worth?
According to our valuation model, Old Dominion Freight Line seems to be fairly priced at around 0.29% above our intrinsic value, which means if you buy Old Dominion Freight Line today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $168.05, there’s only an insignificant downside when the price falls to its real value. Although, there may be an opportunity to buy in the future. This is because Old Dominion Freight Line’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
What kind of growth will Old Dominion Freight Line generate?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 40% over the next couple of years, the future seems bright for Old Dominion Freight Line. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What This Means For You
Are you a shareholder? ODFL’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping an eye on ODFL, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
It can be quite valuable to consider what analysts expect for Old Dominion Freight Line from their most recent forecasts. So feel free to check out our free graph representing analyst forecasts.
If you are no longer interested in Old Dominion Freight Line, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
