The stock market closed lower on Thursday as rates jumped to new highs. The 10-year treasury yield settled at 4.28% after reaching its highest level since October 2022.
Overall, S&P 500 declined 0.8% to 4,370, while NASDAQ fell 1.2% to 13,317.
Tweet of the Day
$WMT Solid beat & raise. SSS +6.4%. US ecom sales +24% (vs +11% $AMZN and $TGT -11%). Acceleration & share taker! FCF $9bn 👍. Nice EBIT margin expansion. Even groceries outgrowing inflation. Now at 25x current year P/E; 12x EBITDA. Not exactly “cheap”, but very solid execution. pic.twitter.com/E3nf8Jij9u
— Wasteland Capital (@ecommerceshares) August 17, 2023
Chart of the Day
Here is the ten-year chart of O’Reilly Automotive (ORLY) as of August 9, 2023, when the stock was at $930.
O’Reilly Automotive is an automotive parts chain that was founded in 1957 from a single store in Missouri. As of end of 2022, the company had a total of 5,929 domestic stores and 42 stores in Mexico. Domestic stores are served primarily by the nearest distribution centers, but also have same-day access to the inventory available at Hub stores which redistribute products to surrounding stores. Customers are both do-it-yourself (DIY) and professional service provider customers.
O’Reilly Automotive delivered strong results last quarter with 16% profit growth on 11% sales growth. The company’s dedication to excellent customer service contributed to this success. Its effective business strategy drove a 9% increase in same-store sales, exceeding expectations in both professional and Do-It-Yourself (DYI) segments. The professional business delivered mid-teens same-store sales growth. DIY was fueled by higher average ticket values, supported by higher prices per item. Last quarter, they opened 42 stores, bringing the year-to-date total to 100 new store openings. This aligns with management’s goal of achieving 180 to 190 new store openings by year-end.
ORLY stock is part of the Growth Portfolio.
