Here's Why O'Reilly Automotive (ORLY) is a Strong Value Stock
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most 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 #3 (Hold) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 27.5X for the current fiscal year compared to the Automotive - Retail and Wholesale - Parts industry's P/E of 22.2X. Additionally, ORLY has a PEG Ratio of 2.1 and a Price/Cash Flow ratio of 24.2X. Value investors should also note ORLY's Price/Sales ratio of 4X.
A company's earnings performance is important for value investors as well. For fiscal 2024, one analyst revised their earnings estimate higher in the last 60 days for ORLY, while the Zacks Consensus Estimate has increased $0.00 to $41.13 per share. ORLY also holds an average earnings surprise of 0.5%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding ORLY to their portfolios.
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O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report