O'Reilly Automotive Inc (ORLY): Today's Featured Retail Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

O'Reilly Automotive ( ORLY) pushed the Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day up 1.2%. By the end of trading, O'Reilly Automotive fell $4.11 (-4.8%) to $81.53 on heavy volume. Throughout the day, 4.5 million shares of O'Reilly Automotive exchanged hands as compared to its average daily volume of 1.6 million shares. The stock ranged in price between $81.34-$85.56 after having opened the day at $85.34 as compared to the previous trading day's close of $85.64. Other companies within the Retail industry that declined today were: Bon-Ton Stores ( BONT), down 6.5%, Christopher & Banks Corporation ( CBK), down 6.3%, Orchard Supply Hardware ( OSH), down 6.2%, and Tilly's ( TLYS), down 3.2%.
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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. O'Reilly Automotive has a market cap of $10.18 billion and is part of the services sector. The company has a P/E ratio of 19.5, below the average retail industry P/E ratio of 19.7 and above the S&P 500 P/E ratio of 17.7. Shares are up 7.1% year to date as of the close of trading on Wednesday. Currently there are 11 analysts that rate O'Reilly Automotive a buy, no analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates O'Reilly Automotive as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, U.S. Auto Parts Network ( PRTS), up 7.7%, E-Commerce China Dangdang ( DANG), up 6.5%, Natural Grocers by Vitamin Cottage ( NGVC), up 5.8%, and Conn's ( CONN), up 5.5%, were all gainers within the retail industry with Amazon.com ( AMZN) being today's featured retail industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the retail industry could consider SPDR S&P Retail ETF ( XRT) while those bearish on the retail industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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