Stock on Focus: O’Reilly Automotive, Inc. (ORLY)

Company Profile:

OReilly Automotive, Inc., together with its subsidiaries, engages in the retail of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States. The company provides new and remanufactured automotive hard parts. Its stores offer auto body paint and related materials, automotive tools, and professional service provider service equipment. The companys stores also offer enhanced services and programs. Its stores provide do-it-yourself and professional service provider customers a selection of brand name, house brands, and private label products for domestic and imported automobiles, vans, and trucks. As of December 31, 2016, the company operated 4,829 stores in 47 states. OReilly Automotive, Inc. was founded in 1957 and is headquartered in Springfield, Missouri.

Recent News:

The company reported that sales for the third quarter ended September 30, 2017, increased $119 million, or 5%, to $2.34 billion from $2.22 billion for the same period one year ago. Net income increased $5 million, or 2%, to $284 million from $278 million (or 12.5% of sales) for the same period one year ago.

Its Board of Directors approved a resolution to increase the authorization amount under its share repurchase program by an additional $1 billion, raising the aggregate authorization under the program to $9.75 billion. The additional $1 billion authorization is effective for a three-year period, beginning on September 1, 2017.

 

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

ORLY’s strengths can be seen in its better growth, strong profitability, and better efficiency compared with its peers. Its revenue and net income have increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator, RSI (14) stands at 61.44 with positive bias. We rate O’Reilly Automotive, Inc. (ORLY) a STRONG BUY.

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