ORLY

ORLY: Big Mo Is on O’Reilly Automotive’s Side Again

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O'Reilly Automotive Inc ( ORLY ) is one of the nation's leading auto parts retailers, one that boasts more than 4,300 stores in 43 states.

If you do that math, that would be an average of 100 stores per state. That's pretty impressive for two brothers who opened their first store in Springfield, Missouri, in 1957.

And ORLY hasn't looked back since then.

The 10 Best Stocks for 2016

By 1989, it had 100 stores throughout the Midwest and South, and it has continued to grow through acquisitions of big regional market players around the U.S., adding stores as well as distribution centers to its operations.

One of the newest strategies for the company now is to look to exploit is current inventory of real estate holdings. Remember, when you have that many stores in such a wide array of states, you tend to end up with a lot of real estate as well.

Given current low interest rates, selling off some its commercial real estate holdings is an ongoing opportunity in a strong market.

ORLY stock also continues to drill down into its foundational markets with the DIY-er and the professional mechanics. When the economy is faltering, more people get under the hood of their vehicles for simple repairs, rather than taking their vehicles to a garage that will charge for parts and labor.

And ORLY knows its market.

ORLY Stock by the Numbers

Its recent quarterly and fiscal year numbers make 2015 the 23rd consecutive year that ORLY has realized same-store sales growth. That means it has sold more out of its stores, year after year, for more than two decades.

Same-store sales growth for Q4 was 7.7% compared to 6.3% in the same quarter a year ago. Sales were up 12% from 2014. Operating income was up nearly 20%.

What's more, ORLY stock just announced that it's committing another $750 million to its stock repurchase program, pushing the total to $6.25 billion. Most companies use the repurchase program as a way to maintain the stock price when the company isn't doing well. That certainly isn't the case for ORLY.

And it makes this stock even more compelling for 2016.

Forward guidance calls for ORLY to open 210 more stores in 2016. It also looks like comparable store sales growth may slow slightly in Q1, likely to do with the weather - fewer people are interested in working on their vehicles when it's winter.

The stock has sold off big since the beginning of February, especially going into the week before it released its latest numbers. But it has now climbed this wall of worry, and momentum is on its side moving forward.

This is a great opportunity.

Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth , Emerging Growth, Ultimate Growth , Family Trust and Platinum Growth . His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com . Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.

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The post ORLY: Big Mo Is on O'Reilly Automotive's Side Again appeared first on InvestorPlace .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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