O'Reilly Automotive Inc Stock Buy Recommendation Reiterated (ORLY)
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- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 36.82% over the past year, a rise that has exceeded that of the S&P 500 Index. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- O'REILLY AUTOMOTIVE INC has improved earnings per share by 19.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, O'REILLY AUTOMOTIVE INC increased its bottom line by earning $3.72 versus $2.97 in the prior year. This year, the market expects an improvement in earnings ($4.64 versus $3.72).
- Despite its growing revenue, the company underperformed as compared with the industry average of 9.6%. Since the same quarter one year prior, revenues slightly increased by 5.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Specialty Retail industry and the overall market, O'REILLY AUTOMOTIVE INC's return on equity exceeds that of both the industry average and the S&P 500.
- The gross profit margin for O'REILLY AUTOMOTIVE INC is rather high; currently it is at 52.80%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 9.30% is above that of the industry average.
--Written by a member of TheStreet Ratings Staff
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