Argus Expects Old Dominion To Ride On Strong Fundamentals, Spillover Effect


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Old Dominion Freight Line (NASDAQ: ODFL) notched a bullish initiation from Argus Wednesday, with an analyst naming three key reasons for the positive stance. 

The Analyst 

Argus analyst John Staszak initiated coverage of Old Dominion with a Buy rating and $175 price target.

The Thesis

Staszak’s rating is one of the most bullish on Wall Street. The average analyst price target prior to his initiation was $147, according to TipRanks

The analyst sees Old Dominion as benefiting from three key factors:

  • The freight company has a 99-percent on-time delivery rate, which drives customer loyalty and market share growth.
  • Fundamentals for the less-than-truckload business are strong. The segment accounts for 98 percent of Old Dominion’s total revenue.
  • Pressure from tight capacity in the full truckload segment has created a “spillover effect” which will benefit Old Dominion as freight shifts to less-than-truckload transport, Staszak said. 

The analyst said he expects the company to report high-teens revenue growth this year that's "well above the 4-percent average growth for peers ArcBest Corp (NASDAQ:ARCB), FedEx Corporation (NYSE:FDX) Freight and YRC Worldwide Inc (NASDAQ:YRCW).

Price Action

Old Dominion shareswere down 1.09 percent at $146.66 at the time of publication Wednesday.

Related Links:

Stifel Upgrades Saia After Sell-Off, Says Freight Carrier Benefits From Better Volumes, Higher Pricing

Deutsche Bank Downgrades Old Dominion, Projects 20% Downside


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


ENTER TO WIN $500 IN STOCK OR CRYPTO

Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!

Posted In: Analyst ColorPrice TargetInitiationAnalyst RatingsArgusJohn Staszak