| Stock (Symbol) | Stock Price | |
O’Reilly Automotive (ORLY) |
$124 |
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| Data is as of | Expected to Report | Sector |
November 4, 2013 |
Feb 3 – Feb 7 |
Food & Necessities |
| Sharek’s Take | ||
 O’Reilly Automotive continues to chug right along. The shares are up from around $90 to $125 this year, and it looks like ORLY will keep rollin down the highway. O’Reilly has around 4000 stores and plans to open around 200 a year in the foreseeable future. O’Reilly grows mainly through buying other auto parts chains, like VIP Parts, TIres & Service and CSK Auto (in 2008).Company management also buys also back stock. Add it together and you get a high-teens grower. For 18 times earnings, ORLY is a good stock to own. |
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| One-Year Chart | ||
 Quarterly profit growth has been solid the last four quarters and that string could continue because ORLY has been beating the street. I like the fact the P/E is only 18, it was 21 last quarter. |
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| Earnings Table | ||
 Profits rose 28% on an 8% increase in sales. CSK stores continue to do better than they had before the merger, this is a key to helping profits. Stock buybacks are another plus.ORLY beat the street bu 5 cents, and has beaten by an average of 6 cents a quarter during the last year. Nice!
Annual Profit Estimates stayed around the same from last quarter. |
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| Fair Value | ||
| I feel the combination of 17% profit growth combined with a good stable business makes ORLY worth 21 times earnings. There’s good upside for next year. The stock could possibly return 30% in two years. | ||
| Ten-Year Chart | ||
 ORLY has a beautiful ten-year chart. Unfortunately I don’t think it can grow profits 21% a year for the next decade, so investors should temper their enthusiasm. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
17 of 24 |
O’Reilly Automotive looks good going into 2014. I think this stock will continue to give investors a mid-to-high teens return while providing good safety. ORLY is ranked 17th in the 24 stock Growth Portfolio Power Rankings. ORLY is not in the Aggressive Growth Portfolio, it’s only a teens grower. |
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Aggressive Growth Portfolio
N/A |
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