| Stock (Symbol) | Stock Price | |
O’Reilly Automotive (ORLY) |
$205 |
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| Data is as of | Expected to Report | Sector |
February 20, 2015 |
Apr 21 – Apr 27 |
Food & Necessities |
| Sharek’s Take | ||
 O’Reilly Automotive is an excellent example of How to Run a Business. The company put out 26% profit growth on only 9% sales growth, and there were many reasons for it. Same store sales growth was 6%, tops in the Auto Parts industry, profit margins increased by more than a percent, and management bought back stock. Last year managment bought back around 5% of its shares outstanding and share count has fallen from 140 million to 100 million from 2011 to 2014. ORLY’s beaten the street every quarter since Fall 2011 and even then it still hit estimates. Plus with gas prices low, this will be a great travel season and people will be driving their cars more — leading to more need for auto parts. The only negative is the stock sells for a premium. What I consider to be a 18% grower, ORLY sells for 24 times earnings and is fairly valued. Still, this is one of the highest quality stocks in my portfolio, a great core holding, and aalso a timely holding for the Summer travel season. |
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| One-Year Chart | ||
 Wow, this stock has really jumped in the past year. ORLY is a small position in client portfolios because its gone up so much. Profit growth was 22% in the past year yet the stock’s gone from around $150 to $200 (around 33%). That’s because the P/E rose, and it can’t keep doing that. |
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| Earnings Table | ||
 As mentioned earlier, profit growth was 26% on a 9% rise in sales.ORLY beat the street by 9 cents and the stock popped higher on the news. Annual Profit Estimates got a large increase this quarter. Very large in my opinion — nice. Quarterly profit estimates continue to show high-teens growth ahead but these keep increasing and ORLY has been beating the street in the end. |
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| Fair Value | ||
 The stock is currently $205 and my Fair Value for this year is 205. So there’s not much upside now, and I would normally sell under these conditions but the Summer should be a great travel season, and I expect the next two earnings reports to be solid |
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| Ten-Year Chart | ||
 Wow, what a run, but it’s not a good sign when the chart starts to make more of an upward angle at the end as it has. I think this stock is high. High quality and high to buy. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
20 of 24 |
O’Reilly Automotive is a great core holding for investors as company management does a great job running a business. Also, the upcoming travel season will mean booming business for the stores. The only negative is investors have prices this stock so high the short-term upside is limited. ORLY is ranked 20th of 24 stocks in the Growth Portfolio Power Rankings. The stock doesn’t have the upside for the Aggressive Growth Portfolio. |
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Aggressive Growth Portfolio
N/A |
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