| Stock (Symbol) | Stock Price | |
O’Reilly Automotive (ORLY) |
$122 |
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| Data is as of | Expected to Report | Sector |
August 23, 2013 |
Oct 21 – Oct 25 |
Food & Necessities |
| Sharek’s Take | ||
 O’Reilly Automotive (ORLY) is growing profits around 20% a quarter because:
This is a stock I think can deliver around 15% growth per year. The only problem its it’s a fairly valued at 21 times earnings. Things are going swell, so the market has priced ORLY higher than normal (it’s usually worth 17 to 18 times earnings). Operating profit margin was 17%, last quarter, the first time in company history (since 1957) it ever hit 17%. ORLY came public in 1992 at $2 a share (adjusted for two 2-for-1 splits). |
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| One-Year Chart | ||
 This stock has been on a tear. That’s a long way from $85 to $120 (40%) considering profit growth only rose 25% a quarter. ORLY’s estimates LTG rate is 16%, but the P/E is 21. Things are good so the market is pricing ORLY high. |
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| Earnings Table | ||
 Sales rose 10% last quarter, well higher than the 4% 2QtrsAgo. Profits jumped 37%.ORLY beat the street by 9 cents, this was solid considering the company beat by only a penny 2QtrsAgo.
Annual Profit Estimates got a big boost. It was a good quarter. |
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| Fair Value | ||
 Although ORLY is humming right along, the stock is selling for 21 times earnings, which is the high median P/E during the last decade. I think upside is limited to the degree the company ups estimates (up 10%, ORLY should go up 10%). |
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| Ten-Year Chart | ||
 During the last decade, ORLY has grown profits 20% a year and the stock’s also grown 20% a year. I feel the company will grow around 15% a year in the long-term future. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
21 of 24 |
O’Reilly Automotive is clicking on all cylinders right now. The stock is timely but there’s not much more upside. This is a solid buy-and-hold stock, but if you don’t own it already I think you can find a better entry point. ORLY is ranked 21st in the 24 stock Growth Portfolio Power Rankings. ORLY is not in the Aggressive Growth Portfolio, it doesn’t have the upside potential. |
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Aggressive Growth Portfolio
N/A |
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