Old Dominion Freight Line experienced a 2.72% decline in its share price over the past week, concurrent with the company's announcement that February's revenue per day fell by 5% due to a 7.1% decrease in LTL tons per day. This dip in revenue suggests challenges in the freight sector, which could have influenced investor sentiment. The broader market context showed fluctuations, with major indices wavering between gains and losses amid concerns over new tariffs and mixed economic data. Despite the overall market dropping 3.1% last week, fears about the global economic environment may have compounded the impact on ODFL's performance. While automakers gained on potential tariff relief, this did not translate positively for Old Dominion, which is more directly impacted by freight demand and volume changes. The mixed economic indicators and uncertainty surrounding future tariffs might continue to weigh on the company's outlook.

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Over the past five years, Old Dominion Freight Line (NasdaqGS:ODFL) achieved a total shareholder return of 180.95%, driven in part by consistent earnings growth, averaging a 15.4% annual increase. However, the company's shares underperformed the US market and the transportation industry over the recent year. Notably, the period saw robust buyback activities, with a total of 5.39 million shares repurchased for over US$1 billion, reflecting management's confidence in the company's long-term value.

A series of dividend increases, including a recent 7.7% rise declared in February 2025, underscored Old Dominion's commitment to returning capital to shareholders. Despite these positive developments, the past year's earnings showed a downturn, as highlighted in reports from late 2024. This earnings dip, coupled with a current high Price-To-Earnings Ratio of 31.4x compared to the industry average, may have affected investor perceptions, constraining recent returns relative to the broader market.

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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.

Companies discussed in this article include NasdaqGS:ODFL.

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