9 Best Trucking Stocks To Buy

5. Old Dominion Freight Line (NASDAQ:ODFL)

Number of Hedge Fund Investors: 38

The second biggest less-than-truckload carrier in the US, Old Dominion Freight Line (NASDAQ:ODFL) has over 11,000 tractors and more than 250 service stations. Its profitability and capital returns are far higher than those of its competitors, and it is among the trucking industry’s most efficient and disciplined providers. The major goals of strategic efforts are to increase network density by gaining market share and to sustain industry-leading service (including ultralow cargo claims) by making consistent infrastructure investments.

Old Dominion Freight Line (NASDAQ:ODFL) is in a strong position to gain market share as former Yellow freight is moved around in the upcoming year because of its capacity investment, placing it among the Best Freight Stocks.

In November 2024, the company’s LTL revenue per hundredweight climbed 3.7% year on year, demonstrating solid yield management despite the economic downturn. Long-term growth in market share and increased shareholder value are made possible by the business’s commitment to providing exceptional customer service. Moreover, in Q3 of 2024, the operating cash flow grew by 4.02% YoY.

Eric Morgan, an analyst at Barclays, increased his price objective for Old Dominion Freight Line (NASDAQ:ODFL) from $190 to $220. Market confidence for possibilities beyond the current downturn is reflected in considerably higher less-than-truckload multiples, according to the firm. In a research note, the analyst informs investors that Barclays’ updated upcycle analysis implies considerable profit growth potential through 2026. According to the firm, an upcycle study indicates that the group has plenty of volume potential, which is supported by share increases on top of a recovery in demand.

Henry Ellenbogen’s Durable Capital Partners was the largest stakeholder in the company from among the funds in Insider Monkey’s database. It owns 1.2 million shares worth $238.99 million as of Q3.