Thomasville, North Carolina-based Old Dominion Freight Line, Inc. (ODFL) is one of the largest North American less-than-truckload (LTL) motor carriers and provides regional, inter-regional and national LTL services. With a market cap of $46 billion, Old Dominion’s offerings also include various value-added services, including container drayage, truckload brokerage, and supply chain consulting.

The LTL giant has lagged behind the broader market over the past year. ODFL stock prices have gained 6.4% on a YTD basis and 7.1% over the past year, underperforming the S&P 500 Index’s ($SPX) 23.1% gains in 2024 and 30.4% returns over the past 52-week period.

Narrowing the focus, ODFL has also underperformed the SPDR S&P Transportation ETF’s (XTN) 9.7% gains on a YTD basis and 24.6% returns over the past year.

Shares of Old Dominion Freight Line plunged 5.5% after the release of its disappointing Q3 earnings on Oct. 23. Due to the ongoing softness in the domestic economy, the company reported a drop in revenues and earnings. Its total revenue of $1.5 billion, reflected a 3% decline compared to the year-ago quarter and missed Wall Street’s topline forecasts by 2.8%, primarily driven by the 4.8% decrease in LTL tons per day which was partially offset by a 1.5% increase in LTL revenue per hundredweight. Moreover, its net income declined 9.1% year-over-year to $308.6 million due to an increase in overall operating expenses as a percentage of revenues.

On a positive note, ODFL’s EPS of $1.43 matched analysts’ expectations and the company has maintained consistency in its market share and yield performance supported by its best-in-class service, providing customers with 99% on-time service and a cargo claims ratio of 0.1% during the quarter.

For the current fiscal year, ending in December, analysts expect ODFL to report a 3.6% year-over-year drop in EPS to $5.43. However, the company has a robust earnings surprise history. It has surpassed or matched analysts’ bottom-line estimates in each of the past four quarters.

ODFL stock has a consensus “Hold” rating overall. Out of the 20 analysts covering the stock, three recommend “Strong Buy,” one advises “Moderate Buy,” 14 suggest “Hold,” and two advocate a “Strong Sell” rating.

This configuration is less bullish compared to a month ago, when five analysts recommended a “Strong Buy” rating.

On Nov. 13, Barclays PLC (BCS) analyst Eric Morgan kept an “Equal Weight” rating and raised the price target on ODFL to $220.

Although ODFL is trading above its mean price target of $197.05, the Street-high target of $241 suggests a potential upside of 11.8% to current price levels.