Should You Investigate Old Dominion Freight Line, Inc. (NASDAQ:ODFL) At US$247?

Old Dominion Freight Line, Inc. (NASDAQ:ODFL) received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$328 at one point, and dropping to the lows of US$236. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Old Dominion Freight Line's current trading price of US$247 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Old Dominion Freight Line’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for Old Dominion Freight Line

What's the opportunity in Old Dominion Freight Line?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 3.00% above my intrinsic value, which means if you buy Old Dominion Freight Line today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth $239.99, there’s only an insignificant downside when the price falls to its real value. Is there another opportunity to buy low in the future? Since Old Dominion Freight Line’s share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What kind of growth will Old Dominion Freight Line generate?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 28% over the next couple of years, the future seems bright for Old Dominion Freight Line. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? It seems like the market has already priced in ODFL’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on ODFL, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. Case in point: We've spotted 1 warning sign for Old Dominion Freight Line you should be aware of.

If you are no longer interested in Old Dominion Freight Line, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.