There's no getting around fixing a car when something breaks. We need them for work, play and travel. That's enabled highly ranked auto parts retailer O'Reilly Automotive to stay in the black this year despite clogged distribution channels and consumer belt-tightening as inflation soars. On Wednesday, O'Reilly Automotive stock's Relative Strength (RS) Rating shot 12 points higher to 77, up from 65 the day before.
O'Reilly Automotive Stock A Few Points From Key Benchmark
The new 77 RS rating places O'Reilly Automotive stock among the top 23% of all companies on stock price performance over the past year. Research shows that top-performing stocks often have an RS Rating north of 80 in the early stages of their moves. See if O'Reilly Automotive can continue to rebound and hit that benchmark.
O'Reilly Automotive stock also has a strong 91 EPS Rating and an 89 Composite Rating. Its SMR Rating (sales+profit margins+return on equity) is an outstanding A on an A-to-E scale with A tops. However, one weak spot is its D- Accumulation/Distribution Rating on an A+ to E scale with A+ the best. The D- indicates that institutional investors are selling more than buying its stock currently.
See How IBD Helps You Make More Money In Stocks
O'Reilly Automotive stock fell to a 251.52 intraday low at the end of March 2020 and had nearly tripled to a fresh all-time high 748.68 at the end of April this year. It's consolidated since then amid the market retreat and traded at 616 Wednesday afternoon, up about 1.3% for the day and on track for a third straight higher close. While now is not an ideal time to buy shares, if the stock watchlist candidate stays the course it could offer and clear an appropriate buy point.
After the company reported double-digit earnings growth three quarters in a row, it cooled last quarter to a 2% rise in EPS, to $7.17 per share, on a 7% increase in sales to $3.296 billion. The Street expects O'Reilly to report second quarter earnings results on or around July 28.
No. 3 Ranked In Auto Group
O'Reilly Automotive stock holds the No. 3 rank among its peers in the Retail/Wholesale-Auto industry group. AutoZone and Genuine Parts are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary RS Rating identifies share price movement with a 1 (worst) to 99 (best) score. The rating shows how a stock's price behavior over the trailing 52 weeks stacks up against all the other stocks in our database.
