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All Time Highs

Stock (Symbol) Stock Price

O’Reilly Automotive (ORLY)

$110

Data is as of Expected to Report Sector

May 6, 2013

July 22

Food & Necessities

Sharek’s Take
David SharekO’Reilly Automotive popped after it reported earnings last quarter. The company only beat by a penny, but estimates increased. The company is doing many things well, and these things together are helping to grow profits 20%:

  • ORLY is expanding by buying other auto parts chains, like VIP Parts, Tires & Service and CSK Auto (in 2008). The conversion from CSK stores to O’Reilly is currently expanding sales and profits. This is a catalyst.
  • O’Reilly has around 4000 stores and will be opening around 200 a year in the foreseable future. 65 stores were opened last quarter.
  • Company management buys back stock.

This is a good stock to buy-and-hold that should give investors annual appreciation of 15% per year.

One-Year Chart
ORLY_2013_Q2The one-year chart shows ORLY hit new highs after it reported profits. I like that Estimates show 30% and 22% profit growth ahead. Right now ORLY’s P/E is 19, which is where it should be.
Earnings Table
ORLY_2013_Q2_EPSSales grew only 4% last quarter, but stock buyback helped grow profits 19%.
 
I thought ORLY would beat by more than a penny last quarter, but either way the stock jumped on the news. 
 
Annual Profit Estimates increased slightly.
 
Quarterly profits look great the next two quarters. These estimates are also increasing.
Fair Value
ORLY_2013_Q2_FVAlthough ORLY is looking good, the stock is close to its Fair Value.
Ten-Year Chart
ORLY_2013_Q2_10yrORLY’s ten-year chart shows this is one of the top growth stocks to buy-and-hold. Profit growth of 20% per year will be tough to match in the coming decade, but the company can boost growth my doing more acquisitions.
Power Ranking Bottom Line
Growth Portfolio

9 of 16

O’Reilly Automotive is at an all-time-high. The combo of 5% new stores, acquisitions, and stock buybacks is helping grow profits in the high teens. The only negative is ORLY isn’t undervalued.
 
ORLY is ranked 8th in the 16 stock Growth Portfolio Power Rankings.
ORLY is not in the Aggressive Growth Portfolio because profit growth isn’t real high and the stock’s not undervalued.
Aggressive Growth Portfolio

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