Springfield, MO-based O'Reilly is a specialty retailer of automotive aftermarket parts, tools, supplies, equipment and accessories.
The company "already was best positioned to take market share given best-in-breed supply chain but now is overearning even that at the expense of Advance Auto Parts disruption. Substantial room to lever up to accelerate repurchases," the firm wrote in an analyst note.
Barclays favors the auto parts and home improvement sectors.
Within U.S. retail broadlines and hardlines, the firm is biased toward companies with strong and stable management teams, execution and shareholder returns.
Shares of O'Reilly closed up by 0.48% to $276.64 on Wednesday.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of A- on the stock.
This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks rated.
The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and expanding profit margins.
The team feels its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: ORLY