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JimVanMeerten (62.22)

O'Reilly Automotive -- ORLY

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April 30, 2010 – Comments (1) | RELATED TICKERS: ORLY

Financial Tides pick today is O'Reilly Automotive, Inc. ( ORLY ) a specialty retailer and supplier of automotive aftermarket parts, tools, supplies, equipment and accessories to both ``do-it-yourself`` customers and professional mechanics or service technicians. O'Reilly stores carry an extensive product line consisting of new and remanufactured automotive hard parts, such as alternators, starters, fuel pumps, water pumps, and brake shoes and pads, maintenance items, such as oil, antifreeze, fluids, engine additives and appearance products, accessories, such as floor mats and seat covers.

The company has been on an acquisition tear lately and will soon integrate 1300 CKS, 123 Checkers and 141 Murrays stores into their fold bringing their total to over 3500 stores. All these stores will be rebannered and new inventory will be O'Reilly labeled. They have experienced a 7% increase in same store sales of the O'Reilly stores and a 5% increase is same store sales of the newly acquired stores.

The technical price action in the stock has been impressive. The price has appreciated 17.88% in the last 30 days. Barchart gives it a 100% technical buy rating with all 13 technical indicators signaling a buy. The stock hit 13 new highs in the last 20 trading session. It trades around 49.31 with a 50 day moving average of 42.12,

Wall Street likes it too with 14 buy, 10 hold and no negative recommendations released. Analysts expect the sales to increase 7.10% this year and 7.60% next year. Earning per share after acquisitions are factored in are expected to increase 17.30% this year, 15.50% next year and continue for a 5 year annual compounded EPS growth of 16.12%.

Investor sentiment is high with the Motley Fool CAPS members thinking the stock will beat the market by a vote of 210 to 13 with the All Stars in agreement by a vote of 75 to 5. The Wall Street calumniates Fool follows have had favorable articles 13 to 1.

Long term investors should expect this stock to increase to about 56.

Jim Van Meerten is an investor who writes on financial matters here and on Financial Tides. Please leave a comment below or email JimVanMeerten@gmail.com.

1 Comments – Post Your Own

#1) On June 28, 2010 at 6:09 AM, BrandonPaulChevy (< 20) wrote:

Nice insight. the auto industry is something to be considered as one of the biggest but worst industry as of late. Even car accesories such as the mud flaps, car covers, and other parts had decreased sales for the past year and a half.

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