Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

O'Reilly Automotive

(

ORLY

) as a post-market leader 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 $138.3 million.
  • ORLY is up 2.2% today from today's close.

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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 31. Currently there are 8 analysts that rate O'Reilly Automotive a buy, no analysts rate it a sell, and 9 rate it a hold.

The average volume for O'Reilly Automotive has been 504,900 shares per day over the past 30 days. O'Reilly Automotive has a market cap of $24.2 billion and is part of the services sector and retail industry. The stock has a beta of 0.77 and a short float of 5.5% with 9.65 days to cover. Shares are up 25.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates O'Reilly Automotive as a

buy

. 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. We feel 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.

Highlights from the ratings report include:

  • ORLY's revenue growth has slightly outpaced the industry average of 8.8%. Since the same quarter one year prior, revenues rose by 10.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • O'REILLY AUTOMOTIVE INC has improved earnings per share by 27.9% 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 $7.34 versus $6.03 in the prior year. This year, the market expects an improvement in earnings ($8.70 versus $7.34).
  • 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 22.4% when compared to the same quarter one year prior, going from $173.86 million to $212.86 million.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. 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 54.78%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 11.19% is above that of the industry average.

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