Here's Why O'Reilly Automotive (ORLY) is a Strong Value Stock
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
O'Reilly Automotive (ORLY)
O'Reilly Automotive, Inc. is a leading specialty retailer of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States. Founded in 1957, O'Reilly initially operated from a single store in Springfield, MO. The company’s stores offer several services and programs to customers, which include battery diagnostic testing, check engine light code extraction and loaner tool program, among others. The company offers vehicle accessories, such as floor mats and seat cover as well as maintenance items like antifreeze, engine additives, filters, fluids, lighting and wiper blades.
ORLY is a Zacks Rank #2 (Buy) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 22.3X for the current fiscal year compared to the Automotive - Retail and Wholesale - Parts industry's P/E of 22.3X. Additionally, ORLY has a PEG Ratio of 1.7 and a Price/Cash Flow ratio of 23.3X. Value investors should also note ORLY's Price/Sales ratio of 3.6X.
A company's earnings performance is important for value investors as well. For fiscal 2023, two analysts revised their earnings estimate higher in the last 60 days for ORLY, while the Zacks Consensus Estimate has increased $0.07 to $38.21 per share. ORLY also holds an average earnings surprise of 4.3%.
Investors should take the time to consider ORLY for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report
