The stock market rose on Thursday brought about by the latest quarterly results from NVIDIA (NVDA), which fueled a rally in technology stocks.
NVIDIA released a strong sales forecast due to increasing demand for Artificial Intelligence technology.
Overall, S&P 500 grew 0.9% to 4,151, while NASDAQ was up 1.7% to 12,698.
Tweet of the Day
Today is the 100th trading day of the year.
S&P 500 up more than 7% YTD as of now and this would be the best start to a yr since 2021 and 2019 before that.
When >7% on day 100? Rest of yr up another 9.4% on avg and higher nearly 89% of time. pic.twitter.com/Sl5tFaXPkM
— Ryan Detrick, CMT (@RyanDetrick) May 25, 2023
Chart of the Day
Here is the one-year chart of O’Reilly Automotive (ORLY) as of May 10, 2023, when the stock was at $955.
O’Reilly Automotive is an automotive parts chain that was founded in 1957 from a single store in Missouri. As of the end of 2022, the company had a total of 5,929 domestic stores and 42 stores in Mexico. Customers are both do-it-yourself (DIY) and professional service provider customers.
O’Reilly Automotive continues to deliver solid results as US cars continue to get older. The average age of a US car is now more than 13 years, up from less than 10 years two decades ago (Source: CarDealershipGuy). And older cars mean more maintenance.
Last quarter, ORLY delivered 15% profit growth on 12% revenue growth as same store sales increased an impressive 11%. Management thinks consumers are facing economic pressures, and are repairing existing vehicles to avoid paying a payment on a new vehicle. However, low unemployment rates and decent gas prices are a good backdrop for growth in miles driven, which inevitably leads to a greater need for auto parts. ORLY doesn’t need a poor economy to grow, it has grown same store sales (SSS) in each of the last 30 years. Remarkable!
ORLY stock is part of the Growth Portfolio.