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O'Reilly Automotive (ORLY) Gains But Lags Market: What You Should Know

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In the latest trading session, O'Reilly Automotive (ORLY) closed at $634.12, marking a +1.52% move from the previous day. The stock lagged the S&P 500's daily gain of 1.84%. Meanwhile, the Dow gained 1.33%, and the Nasdaq, a tech-heavy index, added 0.67%.

Heading into today, shares of the auto parts retailer had lost 0.55% over the past month, outpacing the Retail-Wholesale sector's loss of 5.5% and lagging the S&P 500's loss of 0.5% in that time.

Wall Street will be looking for positivity from O'Reilly Automotive as it approaches its next earnings report date. On that day, O'Reilly Automotive is projected to report earnings of $8.96 per share, which would represent year-over-year growth of 7.56%. Meanwhile, our latest consensus estimate is calling for revenue of $3.71 billion, up 7% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $32.68 per share and revenue of $14.3 billion, which would represent changes of +5.08% and +7.27%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for O'Reilly Automotive. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. O'Reilly Automotive currently has a Zacks Rank of #3 (Hold).

In terms of valuation, O'Reilly Automotive is currently trading at a Forward P/E ratio of 19.11. This valuation marks a premium compared to its industry's average Forward P/E of 16.79.

Also, we should mention that ORLY has a PEG ratio of 1.51. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Automotive - Retail and Wholesale - Parts was holding an average PEG ratio of 1.3 at yesterday's closing price.

The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 235, putting it in the bottom 8% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ORLY in the coming trading sessions, be sure to utilize Zacks.com.

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