Coal freight, in particular, is expected to remain strong in the near term as a large 2x rise in natural gas prices in 2021 has resulted in an increased demand for coal. However, other industrial products freight is likely to rise. Overall, the demand for the trucking industry is likely to remain robust going forward as well, and Old Dominion Freight Line being one of the largest LTL carriers in North America, should benefit form it.įor railroad companies, including Norfolk Southern, the disruption in automotive production due to chip shortages will impact the automotive freight in the near term.
TRUCKING COMPANY NEAR ME DRIVER
Driver shortage is a well known issue for the trucking industry, and the industry at large is unable to meet the rising demand. Both the companies are benefiting from the opening up of the economy post pandemic. For Norfolk Southern, revenues are expected to grow in low teens in 2021 and slow to high single digits in 2022. Looking forward, Old Dominion’s revenues are expected to grow over 30% in 2021, but the growth rate will likely slow to low double-digits next year, as per the consensus estimates. Our dashboard on Norfolk Southern’s revenues offers more details on the company’s segments. For Norfolk Southern, the revenue growth was impacted during the pandemic due to lower production across various industries, resulting in lower demand for railroad transportation. Barring 2020, Old Dominion Freight Line’s revenue has been on a steady rise with increased demand for the trucking industry.
![trucking company near me trucking company near me](https://circlekdrivingjobs.com/wp-content/uploads/2020/09/CK-PHX-Truck-scaled.jpg)
Even if we were to look at the three-year average revenue growth, Old Dominion Freight Line’s CAGR of 6% is higher than the CAGR of -2% for Norfolk Southern. 10%), given a high demand for the trucking industry at large. Old Dominion Freight Line’s revenue growth over the last twelve month period was stronger than Norfolk Southern (24% vs. Old Dominion Freight Line’s Revenue Growth Has Been Stronger
![trucking company near me trucking company near me](https://img1.wsimg.com/isteam/ip/90d28ea8-2eb4-4169-86c0-053ffbf93a32/64269530362__DF3BE822-A1FB-43DF-BB99-1CA355917.jpg)
Parts of the analysis are summarized below.ġ. Our dashboard Norfolk Southern vs Old Dominion Freight Line: Industry Peers Which Stock Is A Better Bet? has more details on this. Let’s step back to look at the fuller picture of the relative valuation of the two companies by looking at historical revenue and operating margin growth. However, there is more to the comparison. Although both the companies saw a rise in revenue over the recent quarters, led by the economic recovery, the growth has been better for Old Dominion Freight Line, aided by high demand for less-than-truckload shipments as well as average revenue per shipment, with a surge in demand for goods due to the opening up of the economy.