12 Best Freight Stocks to Buy According to Hedge Funds

3. Old Dominion Freight Line, Inc. (NASDAQ:ODFL)

Number of Hedge Fund Holders: 50

​Old Dominion Freight Line, Inc. (NASDAQ:ODFL) is a leading LTL carrier with a long history of serving American clients – the company started from a single truck in 1934 and ended up being one of the largest scale players in the US, operating more than 260 service centers across the country. ODFL provides both regional and national LTL freight services, as well as a broad spectrum of value-added solutions like global shipping, brokerage, and supply chain consulting. The company’s leadership position is illustrated by its flawless execution with more than 99% on-time delivery rate.

Old Dominion Freight Line, Inc. (NASDAQ:ODFL)’s latest Q4 financial results reflected continued softness in the domestic economy, with revenue declining 7.3% and diluted EPS decreasing 16.3% YoY. Despite short-term challenges, the company maintained its market share while delivering superior service with 99% on-time performance and a cargo claims ratio below 0.1%. The company also continued to invest in its network, spending $771 million on Capex last year, including significant investments in service center expansion – with over 30% excess capacity in service centers, ODFL is well-positioned for future growth opportunities, making it one of the best freight stocks to consider.

Looking forward, the management of Old Dominion Freight Line, Inc. (NASDAQ:ODFL) remains cautiously optimistic, with January 2025 results showing a 4.2% decrease in revenue per day on a YoY basis, primarily driven by a 7.1% decrease in LTL tons per day. The company’s consistent execution and commitment to superior service has enabled it to win more market share than any other LTL carrier over the past decade, and management remains confident in their ability to continue this trend.