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 down 0.7%. By the end of trading, O'Reilly Automotive fell $1.08 (-1.2%) to $88.19 on light volume. Throughout the day, 965,169 shares of O'Reilly Automotive exchanged hands as compared to its average daily volume of 1.7 million shares. The stock ranged in price between $87.94-$89.50 after having opened the day at $89.27 as compared to the previous trading day's close of $89.27. Other companies within the Retail industry that declined today were: Bidz.com ( BIDZ), down 42.6%, J.C. Penney ( JCP), down 12.9%, ALCO Stores ( ALCS), down 7.5%, and U.S. Auto Parts Network ( PRTS), down 6.1%.
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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 $10.57 billion and is part of the services sector. The company has a P/E ratio of 19.3, above the S&P 500 P/E ratio of 17.7. Shares are up 11.2% year to date as of the close of trading on Friday. Currently there are 12 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 solid stock price performance, impressive record of earnings per share growth, revenue growth, notable return on equity and good cash flow from operations. 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, QKL Stores ( QKLS), up 4.7%, Citi Trends ( CTRN), up 4.6%, GameStop ( GME), up 4.4%, and Vitacost.com ( VITC), up 3.8%, were all gainers within the retail industry with Best Buy ( BBY) 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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