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, Inc. (ODFL), a leading less-than-truckload motor carrier, has been gaining attention from financial experts as a potential investment due to its efficient operations and undervalued dividend growth prospects. The company's ability to deliver consistent earnings and its commitment to shareholder returns make it an attractive option for long-term investors.

During the first quarter of 2025, US Bancorp DE reduced its holdings in ODFL by 16.2%, selling 4,478 shares and reducing its total holdings to 23,154 shares [1]. Despite this reduction, US Bancorp DE's remaining holdings were valued at $3,831,000, indicating a strong belief in the company's long-term prospects. Other institutional investors, such as Larson Financial Group LLC, American National Bank & Trust, Wayfinding Financial LLC, Itau Unibanco Holding S.A., and Olde Wealth Management LLC, have also shown interest in ODFL, with significant increases in their holdings during the first quarter [1].

Analysts have been mixed in their opinions on ODFL. While some have downgraded their price targets, others have maintained or even increased their ratings. Raymond James Financial, for instance, reduced its price target from $180.00 to $165.00 but maintained an "outperform" rating [1]. Citigroup upgraded ODFL from a "neutral" rating to a "buy" rating and reduced its target price from $186.00 to $183.00 [1]. According to TipRanks, the overall stock score for ODFL is driven by strong financial health and a commitment to shareholder returns, despite bearish technical indicators and high valuation [2].

ODFL's recent earnings report showed a slight miss, with earnings per share of $1.27 compared to the consensus estimate of $1.29. However, the company's net margin and return on equity remained strong, indicating its operational efficiency [1]. The company also declared a quarterly dividend of $0.28 per share, representing a $1.12 annualized dividend and a dividend yield of 0.8% [1]. This dividend payout ratio of 21.88% suggests that ODFL is committed to returning value to its shareholders.

With a market capitalization of $31.10 billion, a price-to-earnings ratio of 28.74, and a beta of 1.24, ODFL is well-positioned to outperform the market for years to come. Its efficient operations and strong dividend growth prospects make it an attractive investment for long-term investors seeking steady returns.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-us-bancorp-de-sells-4478-shares-of-old-dominion-freight-line-inc-nasdaqodfl-2025-08-06/
[2] https://www.tipranks.com/stocks/odfl/forecast