O'Reilly Automotive (ORLY) Spotted As Roof Leaker Today
Trade-Ideas LLC identified
(
) as a "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified O'Reilly Automotive as such a stock due to the following factors:
- ORLY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $158.6 million.
- ORLY has traded 641,402 shares today.
- ORLY is trading at 1.86 times the normal volume for the stock at this time of day.
- ORLY crossed below its 200-day simple moving average.
'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend.
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More details on ORLY:
O'Reilly Automotive, Inc., together with its subsidiaries, engages in the retail of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States. ORLY has a PE ratio of 27. Currently there are 15 analysts that rate O'Reilly Automotive a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for O'Reilly Automotive has been 754,600 shares per day over the past 30 days. O'Reilly Automotive has a market cap of $24.9 billion and is part of the services sector and retail industry. The stock has a beta of 0.79 and a short float of 5.5% with 8.48 days to cover. Shares are up 3.3% year-to-date as of the close of trading on Monday.
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Analysis:
rates O'Reilly Automotive as a
. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, notable return on equity and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- O'REILLY AUTOMOTIVE INC has improved earnings per share by 25.7% 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 $9.18 versus $7.34 in the prior year. This year, the market expects an improvement in earnings ($10.74 versus $9.18).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Specialty Retail industry average. The net income increased by 20.0% when compared to the same quarter one year prior, going from $212.86 million to $255.37 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 11.5%. Since the same quarter one year prior, revenues rose by 10.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Specialty Retail industry and the overall market, O'REILLY AUTOMOTIVE INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- The gross profit margin for O'REILLY AUTOMOTIVE INC is rather high; currently it is at 54.88%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.18% is above that of the industry average.
- You can view the full O'Reilly Automotive Ratings Report.
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