O’Reilly Stock Cruising Higher With Steady Annual Growth

ORLY has jumped 40% since dropping to its recent lows

facebook twitter linkedin


O'Reilly Automotive, Inc. (NASDAQ:ORLY) is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States. ORLY serves both professional service providers and do-it-yourself customers. O'Reilly operates 5,710 stores in 47 U.S. states and 22 stores in Mexico. ORLY is currently flat in electronic trading, steadily at $600.92.

O’Reilly stock has increased approximately 25% in price year-over-year and is up 42% since bottoming at a 52-week low of $424.03 at the end of January. Additionally, shares of ORLY have grown 32% year-to-date and are currently down just 3% from its record high of $621.73 that was tapped in July.

ORLY has steadily outperformed earnings expectations on all four of its most recent earnings reports. For Q3 of 2020, ORLY beat analysts’ estimates by a decent margin of $0.67, reporting an EPS of $7.07. For Q4 of 2020, O'Reilly's EPS decreased to $5.40, still beating expectations by a margin of $0.27. For Q1 of 2021, ORLY had an increase in earnings, rising to $7.06 per share and beating estimates by a huge margin of $1.59. For Q2 of 2021, O’Reilly reported an EPS of $8.33 and beat expectations by a wide margin of $0.77.

From a fundamental point of view, O’Reilly stock is an interesting long-term option for investors. The car parts company has maintained consistent growth on top- and bottom-lines for multiple years. ORLY's most notable fundamental issue is its balance sheet, which holds $5.91 billion in total debt and just $631.6 million in cash.

Nonetheless, a price-earnings ratio of 21.60 is a fair value considering O'Reilly's steady and substantial growth rate. ORLY also has a forward price-earnings ratio of 20.33, which indicates an expected growth in earnings for the company as well.

Short interest has been on the rise for ORLY, up 26% during the past two reporting periods. This accounts for 2.4% of the stocks' total available float, and would take just one day for shorts to buy back their bearish bets.

Now could be a good time to weigh in on ORLY with options, too. The stock is seeing attractively priced premiums at the moment, per the security's Schaeffer's Volatility Index (SVI) of 19%, which sits in the 10th percentile of its annual range. 

 

Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!