Yahoo Finance Is Old Dominion Freight Line (ODFL) Poised for Continued Share Growth?
ClearBridge Investments, an investment management company, released its “ClearBridge Multi Cap Growth Strategy” first quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter, the Strategy underperformed its benchmark, the Russell 3000 Growth Index. The Strategy posted gains across five of the seven sectors in which it was invested, on an absolute basis. Overall stock selection detracted from the performance on a relative basis. In addition, please check the fund’s top five holdings to know its best picks in 2024.
ClearBridge Multi Cap Growth Strategy highlighted stocks like Old Dominion Freight Line, Inc. (NASDAQ:ODFL), in the first quarter 2024 investor letter. Old Dominion Freight Line, Inc. (NASDAQ:ODFL) is a less-than-truckload motor carrier that provides regional, inter-regional, and national less-than-truckload services, as well as expedited transportation. The one-month return of Old Dominion Freight Line, Inc. (NASDAQ:ODFL) was 0.89%, and its shares lost 2.66% of their value over the last 52 weeks. On June 25, 2024, Old Dominion Freight Line, Inc. (NASDAQ:ODFL) stock closed at $174.85 per share with a market capitalization of $37.992 billion.
ClearBridge Multi Cap Growth Strategy stated the following regarding Old Dominion Freight Line, Inc. (NASDAQ:ODFL) in its first quarter 2024 investor letter:
"Also in industrials, we added Old Dominion Freight Line, Inc. (NASDAQ:ODFL), the second-largest less-than-truckload (LTL) provider in North America with a national footprint. Transportation has experienced a longer than usual freight recession that could create a constructive macro setup going forward. The potential for nearshoring/reshoring of industrial manufacturing and localization of retail distribution are also potential longer-term tailwinds for this industry. We believe Old Dominion is well-positioned for continued share gains in a large, consolidated LTL market and capable of generating durable revenue growth on the back of volume and pricing increases. The company owns the real estate for over 95% of its service centers, whereas competitors typically lease about half of theirs, which we view as a significant competitive advantage for Old Dominion to expand capacity and market share."
A large fleet of freight trucks travelling down an interstate highway.
Old Dominion Freight Line, Inc. (NASDAQ:ODFL) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Old Dominion Freight Line, Inc. (NASDAQ:ODFL) at the end of the first quarter which was 43 in the previous quarter. Old Dominion Freight Line, Inc. (NASDAQ:ODFL) saw an improvement in its financial performance in the first quarter of 2024, despite the ongoing softness in the domestic economy. The company's revenue for the first quarter of 2024 amounted to $1.5 billion, an increase of 1.2% year over year. While we acknowledge the potential of Old Dominion Freight Line, Inc. (NASDAQ:ODFL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
We discussed Old Dominion Freight Line, Inc. (NASDAQ:ODFL) in another article and shared the list of best logistics stocks to buy. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
