Is Old Dominion Freight Line, Inc. (ODFL) the Best Buy-the-Dip Stock to Buy Now?

We recently published a list of 11 Best Buy-the-Dip Stocks to Buy Now. In this article, we are going to take a look at where Old Dominion Freight Line, Inc. (NASDAQ:ODFL) stands against other best buy-the-dip stocks to buy now.

As volatility rises, AllianceBernstein believes that staying invested remains a strategic priority to capture the long-term return potential in a broadening market. Global equities saw fresh difficulties in Q1 2025 amidst increased trade-war worries and developments in AI. As per the firm, bouts of volatility and a cloudy outlook highlighted the increased importance of diversification, valuations, and company fundamentals.

Realignment of Earnings

As per AllianceBernstein, recent shifts in equity return patterns highlight a deeper look at longer-term earnings trends. Over the previous 15 years, the US corporate earnings growth managed to outpace that of the non-US companies, reflected by the MSCI EAFE Index. The firm believes that, before 2010, this wasn’t always the scenario. Its research demonstrated that in 3 of the 4 decades since 1970, non-US earnings surpassed US earnings. This year, US corporate earnings growth is projected to come closer in line with that of earnings growth of the rest of the world, says AllianceBernstein. At the same time, the equity valuations outside the US remain at a significant discount, considering the 2025 forecast earnings.

Despite a difficult quarter, the firm opines that the US stocks are critical to any diversified allocation. Over the last 60 years, US earnings growth has continued to rise consistently, tackling significant economic and geopolitical shocks. Unshakeable US advantages— which span from innovation to education to corporate culture— form a critical factor for the equity returns. Overall, the firm believes that a US allocation with disciplined active portfolios throughout the style spectrum is the correct way to tap into the dynamic market.

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.

Measures Likely to Help US Stocks

According to BlackRock, the US is home to some renowned and innovative companies. The country remains at the forefront of the AI infrastructure buildout and a frontrunner on the global stage when it comes to both R&D spending and patent applications. IP laws continue to stimulate such an innovative impulse. As per the firm, the US possesses over half the world’s “unicorn” companies. According to them, any moves toward policy targeting deregulation can further accelerate the innovative edge.

These measures contribute to the firm’s positive long-run outlook for US stocks. Over the near term, it anticipates that the market will broaden out. This broadening will take place from “Magnificent 7” leadership to the rest of the US and also to other parts of the world. As per the asset manager, Q1 results can be a teaser. The developed markets, ex-U.S., are expected to lead returns, followed by emerging markets and then value stocks in the U.S.

Our Methodology

To list the 11 Best Buy-the-Dip Stocks to Buy Now, we used a screener to shortlist stocks that trade close to their respective 52-week lows. After getting an extended list of 25-30 stocks, we chose the ones popular among hedge funds. Finally, the stocks are ranked in ascending order of their hedge fund sentiments, as of Q4 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Old Dominion Freight Line, Inc. (NASDAQ:ODFL)

Closing Price as on April 28: $149.0

52-week Low: $144.9

Number of Hedge Fund Holders: 50

Old Dominion Freight Line, Inc. (NASDAQ:ODFL) operates as a less-than-truckload motor carrier.  Stephens analyst Daniel Imbro gave the price objective of $180, and kept an “Overweight” rating on the company’s stock. As per the analyst, Old Dominion Freight Line, Inc. (NASDAQ:ODFL)’s excess capacity places it better as compared to the competitors to capture share via an upcycle. Elsewhere, TD Cowen analyst Jason Seidl reiterated the neutral stance on the company’s stock, giving a “Hold” rating on April 9.

As per this analyst, the company’s Q1 EPS exceeded expectations, demonstrating some operational strengths. Notably, in Q1 2025, it posted diluted EPS of $1.19. Even though the company has started to gain market share and expects a pivot from truckload to less-than-truckload freight, such benefits can be overshadowed by the broader economic headwinds, opines Seidl. Old Dominion Freight Line, Inc. (NASDAQ:ODFL) spent $1.5 billion on capital expenditures over the past 2 fiscal years. Therefore, it has sufficient capacity within its service center network to accommodate future growth because of such ongoing investments. Therefore, the company expects that its capital expenditures will total ~$450 million in 2025, which is a $125 million reduction from its initial plan.

Conestoga Capital Advisors, an asset management company, released its Q4 2024 investor letter. Here is what the fund said:

“Based in Thomasville, NC, Old Dominion Freight Line, Inc. (NASDAQ:ODFL) is one of the country’s largest less-than-truckload (LTL) carriers, an industry which has high barriers to entry. The company generated industry leading profit margins because of the durable competitive advantages it has created over decades including a balanced network and superior service. The freight industry is coming off a two plus year volume recession and we anticipate ODFL will resume its historical cadence of share gains in the next freight upcycle.”

Overall, ODFL ranks 2nd on our list of best buy-the-dip stocks to buy now. While we acknowledge the potential of ODFL as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than ODFL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.