Is O'Reilly Automotive (ORLY) Stock Outpacing Its Retail-Wholesale Peers This Year?
For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Is O'Reilly Automotive (ORLY) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.
O'Reilly Automotive is a member of the Retail-Wholesale sector. This group includes 227 individual stocks and currently holds a Zacks Sector Rank of #3. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. O'Reilly Automotive is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for ORLY's full-year earnings has moved 3.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, ORLY has moved about 18.4% on a year-to-date basis. In comparison, Retail-Wholesale companies have returned an average of -26.5%. As we can see, O'Reilly Automotive is performing better than its sector in the calendar year.
Another Retail-Wholesale stock, which has outperformed the sector so far this year, is Sprouts Farmers (SFM). The stock has returned 0.1% year-to-date.
For Sprouts Farmers, the consensus EPS estimate for the current year has increased 3.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, O'Reilly Automotive belongs to the Automotive - Retail and Wholesale - Parts industry, which includes 4 individual stocks and currently sits at #54 in the Zacks Industry Rank. On average, this group has lost an average of 1.5% so far this year, meaning that ORLY is performing better in terms of year-to-date returns.
On the other hand, Sprouts Farmers belongs to the Food - Natural Foods Products industry. This 7-stock industry is currently ranked #32. The industry has moved +7.2% year to date.
Investors interested in the Retail-Wholesale sector may want to keep a close eye on O'Reilly Automotive and Sprouts Farmers as they attempt to continue their solid performance.
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