Old Dominion Freight Line, Inc. (ODFL)

ODFL stock forecast: buy or sell

ODFL stock outlook

  • Old Dominion Freight Line closed on Friday at $185.98 after slightly changing a -0.65% and broke a streak of 3 sessions in negative.
  • Old Dominion Freight Line posted its financial report on July 30
  • Deutsche Bank published a hold rating for Old Dominion Freight Line on Wednesday, targeting $166.00
  • Old Dominion Freight Line, Inc. operates as a less-than-truckload (LTL) motor carrier in the United States and North America.
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Important:
The comments published in this article are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this article does not have any knowledge of the particular circumstances of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are posted for educative purposes only

ODFL stock chart overview

Should I buy Old Dominion Freight Line stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is ODFL stock a buy?

Currently, Old Dominion Freight Line stock matches one trading strategy:

ATH buy setup

One of the most recommended trading strategies is to buy on All-time Highs (ATH) breakouts. The good point of buying at ATHs is that shares price doesn't struggle with upper resistances, and usually it scales rapidly. However, there's the risk of a bulls trap that may trigger your buy order and then drops sharply. That's why a stop loss is always important. Price is now at 2.23% of all-time highs and it can breakout at any time, so if you want to trade this setup it's recommended to setup your order at $190.13. The stop loss would be set at $171.12

Buy setupBuy pointStop lossRisk
ATH buy setup$190.13$171.1210%
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Should I sell Old Dominion Freight Line stock?

Knowing when to sell a stock is even more difficult than knowing when to buy it. As when we have to buy shares, deciding when is appropiate to sell is not a random decision, and we must use our own trading strategy. When selling, as well as buying, detailed strategies are very simple to use and are only valid for selling stocks you already own, not for shorting ODFL stock

A golden rule is that you must never hold a trade that yields greater losses than those expected by the time of purchase. The moment to sell shares should always be dictated by the stop-loss (automatic or manual)

Is it time to sell Old Dominion Freight Line stock?

In the current situation of Old Dominion Freight Line there is not any eligible sell setup, so Old Dominion Freight Line stock holders with operations in green can keep their positions

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Analysts' recommendations to buy or sell Old Dominion Freight Line stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, 4 ratings were published for Old Dominion Freight Line

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Old Dominion Freight Line ratings

Brokerage firmRating
Jul 31st, 2020
Credit Suisse Group Neutral
Jul 31st, 2020
KeyCorp Buy
Aug 3rd, 2020
Morgan Stanley Buy
Aug 5th, 2020
Deutsche Bank Neutral

Technical analysis

Old Dominion Freight Line stock started an uptrend in mid-March, and gained a gorgeous 75.93%. During this uptrend, the price offered some buy points on the breakouts. Latest pullback was in mid-June, when price bounced at $153.57. Old Dominion Freight Line broke out above $171.62 (its last top) in early July. That breakout was a good entry point

SMAs overview

A favorite tool of many technical analysts are the moving averages, that easily show market direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

Supports and resistances

Technical analysts use supports and resistances as a way to spot price points in the stock price action that tend to behave as barriers, preventing the price of a stock to move up or down. Supports are levels where the price may stop as it falls. Price is more likely to "bounce off" this level rather than break through it. Nevertheless, if the price breaks down this level, it will probably continue falling until meeting another support level. In contrast, resistances are where the price may find resistance as it rises. In the same way, the price is more likely to "bounce off" at this level, and if it finally breaches this level, it will rise easily until it hits the next resistance

Price is at all-time highs and there are not upper resistance levels.

The current support levels are:

  • S1: $171.62 (-7.72% below)
  • S2: $153.57 (-17.43% below)
  • S3: $151.16 (-18.72% below)
  • Bollinger bands

    This is an indicator that was introduced in the 1980s by John Bollinger. It is composed of 3 bands that are outlined superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    The price is trading near to the upper Bollinger band, indicating some level of overbought in recent sessions. This is not a bearish indicator, as price can move in these levels for many days and weeks

    Relative strength index

    The Relative Strength Index is an oscillator-type indicator that track price movements to reveal when the price of a share or financial asset is oversold or overbought. Oscillator indicators, such as relative strength, are intended to indicate values in the range of 0-100. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by stock traders

    The RSI dropped below the overbought level of 70 on July 23 after just crossing to the overbough zone for a single day (weak signal). The RSI value on Friday was 61.99. Old Dominion Freight Line price scarcely changed a 0.14% since RSI lost the overbought zone

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    Earnings and financials

    Old Dominion Freight Line, Inc. (ODFL) published quarterly earnings of $1.25 per share, uplifting the Market consensus estimate of $1.08 per share. This Q2 report means an earnings surprise of 15.74%. On the contrary, the company said turnover for this quarter was $896.2 million in line with analysts' forecasts.

    Compared to the same quarter one year ago, EPS was $1.44, so current EPS means a reduction of -13.19%. Turnover dropped a -15.51% on an annualized basis in the second-quarter, from $1.1B to $896.2M last quarter.

    ODFL is hosting the earnings call next October. Forecasted earnings of %s per-share for this quarter is $1.41. Financial reporting day has an additional risk for investors as the results posted can gap up or down the price with very low volume and not respecting your buy/stop-loss orders. You can probably find more information about the earnings conference call and the earnings reports on the Investor Relations section of its website: http://www.odfl.com.

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