Old Dominion recently announced it was implementing a two-for-one stock split. The move begs the question of whether truckers can improve their finances and prepare for retirement by investing in their very own industry. It’s no secret that Americans depend on truck transportation to deliver 72 percent of all goods and materials. By that same token, we’ve all seen the splashy headlines of major operations such as Yellow Corp going belly up.
The recent stock split by Old Dominion may offer investors an opportunity to purchase stock at half the cost, or at least a lower price. A stock split of 2-for-1 essentially means someone with a share valued at $100 now owns two worth $50. No value is necessarily lost or gained. Those who wish to invest in companies such as Old Dominion may have access to stocks at a significantly lower price when the process has been completed on or about March 27. That’s when the organization will enjoy upwards of 217,600,000 outstanding shares.
This is not to say the 90-year-old operation is a good or poor investment. Only investment gurus can accurately speak to such questions. Platforms such as Yahoo Finance and Motley Fool routinely publish articles that hype the value of trucking and logistics companies. One such post indicated that outfits such as UPS and FedEx were “sluggish.”
On the other hand, XPO delivered “a blockbuster earnings report last Wednesday as shares of the less-than-truckload (LTL) shipping provider jumped 18.9 percent as its fourth-quarter results blew past expectations.” According to reports, XPO didn’t necessarily make immediate stock gains, largely because it invested $55 million into Yellow Corp asset purchases that are expected to prove beneficial. Benzinga, a financial news platform based in Detroit, didn’t list XPO on its recent Best Trucking Stocks list. This is an example of what five companies were on the Benzinga list.
- JB Hunt Transport
- Knight-Swift
- Landstar System
- ZTO Express
- Old Dominion Freight Line
Platforms such as MarketWatch and others agree that XPO has been a high-performing stock. It was reportedly worth more than $120 per share in early February, up from about $35 a year ago. No one can predict whether XPO, Old Dominion, or other seemingly strong freight carriers and logistics outfits will help truckers grow their financial resources. But isn’t it worth speaking to a professional about taking stock in the very industry that keeps America’s supply chains moving?
Sources:
https://finance.yahoo.com/news/168-past-little-known-trucking-124000098.html
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