NVIDIA Drives Stock Market’s Rally on Thursday

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.


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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.

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