Unlocking Market-Beating Potential with Old Dominion Freight Line and Undervalued Dividend Growers

A finance expert recommends Old Dominion Freight Line (ODFL) as a potential investment due to its efficient less-than-truckload carrier status and undervalued dividend growth prospects. The article suggests that ODFL could outperform the market for years to come.

Old Dominion Freight Line (ODFL) recently reported its second-quarter 2025 results, showing sales of $1,407.72 million and net income of $268.63 million, both down from the prior year. Despite this dip, the company maintained its dividend and share repurchase programs, indicating a commitment to capital returns. The company's lower sales and earnings reflect persistent sector-wide headwinds and economic uncertainty.

ODFL operates as a leading less-than-truckload (LTL) motor carrier in the United States and North America, offering regional, inter-regional, and national services. The company's efficient LTL carrier status and undervalued dividend growth prospects make it an attractive investment opportunity. According to Simply Wall St, ODFL is projected to reach $6.7 billion in revenue and $1.4 billion in earnings by 2028, based on an expected annual revenue growth rate of 5.4% and a $0.3 billion increase in earnings from the current $1.1 billion level [1].

Analysts have mixed ratings for ODFL, with a significant number giving it a "hold" rating and an average price target of $167.62. Investment analysts at Robert W. Baird lowered their price target on ODFL from $164.00 to $148.00, suggesting a potential upside of 4.34% from the company's current price [2]. Other analysts have also weighed in, with Susquehanna decreasing their price objective from $168.00 to $160.00, Stephens from $186.00 to $174.00, and Bank of America raising their price target from $167.00 to $183.00.

Institutional investors have shown interest in ODFL, with Larson Financial Group LLC, Rossby Financial LCC, American National Bank & Trust, Wayfinding Financial LLC, and Zions Bancorporation National Association UT acquiring new positions in the stock. Institutional investors own 77.82% of the company's stock.

Despite the recent dip in earnings, ODFL's efficient LTL carrier status and undervalued dividend growth prospects make it a potential investment opportunity. The company's commitment to capital returns and its position as a leading LTL carrier suggest that it could outperform the market for years to come.

References:
[1] https://simplywall.st/stocks/us/transportation/nasdaq-odfl/old-dominion-freight-line/news/can-old-dominion-odfl-balance-dividend-growth-and-market-sha
[2] https://www.marketbeat.com/instant-alerts/robert-w-baird-lowers-old-dominion-freight-line-nasdaqodfl-price-target-to-14800-2025-08-04/