ORLY O Reilly Automotive Inc

O'Reilly Automotive, Inc. (ORLY) just jumped into a new all-time high as the company continues to perform well in the weak economy. With estimates on the rise and a bullish growth projection, this Zacks #1 Rank stock is an upgrade on momentum.

Company Description

O'Reilly Automotive, Inc. is a retailer of automotive aftermarket, parts, tools and supplies in the united States. The company was founded in 1957 and has a market cap of $9.15 billion.

Few companies can boast of a new all-time high in the weak market of the last month. But with strong Q2 results from late July fueling gains, ORLY is in exclusive company.

Second-Quarter Results

Revenue for the period was up 7% from last year to $1.48 billion. Earnings were up 34% from last year, coming in at 96 cents, in line with the Zacks Consensus Estimate. O'Reilly has an average earnings surprise of 10% over the last four quarters.

Strong Comparable Store Sales

The good quarter was driven by a solid showing in comparable store sales, up 4.4% against a tough comparison of 7.9% from last year.

Share Repurchase

The company was also busy returning value to its shareholders, buying back 3.3 million shares for $194 million. That pushes the company's year to date repurchases to $338 million, leaving $162 million left on January's $500 million Board approval.

Financial Profile

O'Reilly has been able to use its earnings momentum to strengthen its financial profile, with cash and short-term investments up $237 million to $269 million against total debt of just $499 million, down $85 million from last year.

Estimates

Estimates are up a bit over the last few months, with the current year adding 2 cents to $3.61 while the next-year estimate gained 3 cents to $4.10, a bullish 14% growth projection.

Valuation

ORLY's PEG ratio of 1.35 is above the benchmark of 1 for value.

12-Month Chart

On the chart, ORLY hit a new all-time high in mid September, a rare feet in the weak market. Look for support from the long term trend on any weakness. Take a look below.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Surprise Trader Service.
 
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