To get ready for earnings season, focus on stocks in or near a potential buy zone ahead of their next quarterly report. O'Reilly Automotive stock currently fits that bill. It's expected to release its latest numbers around Apr. 27.
The stock is about 5% above a 705.10 buy point from a first-stage cup with handle. Read "Looking For The Next Big Stock Market Winners? Start With These 3 Steps" for more tips.
Understand that buying a stock close to earnings is risky, since an EPS or sales miss could send it sharply lower. You can minimize your exposure by waiting to see how the company reports and how the market reacts. You can also use an options strategy to limit your potential downside.
See How IBD Helps You Make More Money In Stocks
Sees Top And Bottom Line Growth
The auto parts retailer saw both earnings and sales growth rise last quarter. Earnings-per-share increased from 14% to 41%. Revenue rose from 8% to 16%.
Analysts expect earnings growth of 6% for the quarter, and a 7% gain for the full year.
O'Reilly Automotive stock has a 96 Composite Rating and holds the No. 1 rank among its peers in the Retail/Wholesale-Auto industry group. AutoZone and Genuine Parts are also among the group's highest-rated stocks.
Note: Dates for earnings reports are subject to change. Check the company's website for any updates.
