O'Reilly Automotive Inc (ORLY): Today's Featured Services Winner

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 Services sector higher today making it today's featured services winner. The sector as a whole was unchanged today. By the end of trading, O'Reilly Automotive rose $1.23 (1.3%) to $94.08 on average volume. Throughout the day, 1.8 million shares of O'Reilly Automotive exchanged hands as compared to its average daily volume of 1.7 million shares. The stock ranged in a price between $93.10-$94.39 after having opened the day at $93.10 as compared to the previous trading day's close of $92.85. Other companies within the Services sector that increased today were: Mastech Holdings ( MHH), up 27.3%, Christopher & Banks Corporation ( CBK), up 24.5%, Five Below ( FIVE), up 18.4%, and Grupo Casa Saba S.A.B. de C.V ( SAB), up 15.5%.
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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 $10.66 billion and is part of the retail industry. The company has a P/E ratio of 20.2, above the S&P 500 P/E ratio of 17.7. Shares are up 16.3% year to date as of the close of trading on Thursday. Currently there are 12 analysts that rate O'Reilly Automotive a buy, no analysts rate it a sell, and six 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 negative front, LodgeNet Interactive Corporation ( LNET), down 25%, Pacific Sunwear ( PSUN), down 19.6%, Bluefly ( BFLY), down 19.6%, and Point.360 ( PTSX), down 17.1%, were all laggards within the services sector with Gannett ( GCI) being today's services sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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