Old Dominion

Methodology

Old Dominion's less-than-truckload operations create earnings sensitivity to economic activity and freight volumes, though superior service quality provides pricing power. The calculation works reasonably well when normalizing for economic cycles and focusing on market share gains and operating ratio improvement. Consistent execution makes earnings more predictable than typical transportation companies.

Methodology

Old Dominion consistently commands premium PEG ratios reflecting exceptional service quality, industry-leading operating ratios, and market share gains in LTL freight. While expensive versus trucking peers, operational excellence and competitive moats justify valuations. Compare to Old Dominion's historical range and peer Saia while considering the unique service-driven market positioning.

Methodology

Old Dominion offers a modest dividend as management prioritizes network investments and capacity expansion to maintain service leadership. The small dividend adds minimal value compared to capital appreciation potential from market share growth. For this operationally excellent carrier, earnings growth and margin expansion matter far more than current yield.