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O'Reilly Automotive (ORLY) Outpaces Stock Market Gains: What You Should Know

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O'Reilly Automotive (ORLY - Free Report) closed at $586.72 in the latest trading session, marking a +0.29% move from the prior day. This move outpaced the S&P 500's daily gain of 0.22%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.22%.

Heading into today, shares of the auto parts retailer had gained 2.47% over the past month, outpacing the Retail-Wholesale sector's loss of 6.89% and the S&P 500's loss of 10.02% in that time.

Wall Street will be looking for positivity from O'Reilly Automotive as it approaches its next earnings report date. In that report, analysts expect O'Reilly Automotive to post earnings of $8.96 per share. This would mark year-over-year growth of 7.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.71 billion, up 7% from the year-ago period.

ORLY's full-year Zacks Consensus Estimates are calling for earnings of $32.62 per share and revenue of $14.3 billion. These results would represent year-over-year changes of +4.89% and +7.27%, respectively.

Any recent changes to analyst estimates for O'Reilly Automotive should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.16% lower. O'Reilly Automotive is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, O'Reilly Automotive is currently trading at a Forward P/E ratio of 17.98. This represents a premium compared to its industry's average Forward P/E of 15.74.

It is also worth noting that ORLY currently has a PEG ratio of 1.42. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Retail and Wholesale - Parts was holding an average PEG ratio of 1.2 at yesterday's closing price.

The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 228, which puts it in the bottom 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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