- O’Reilly Automotive (ORLY) stands out for strong technical momentum, new all-time highs, and a consistent “Buy” signal from Barchart indicators.
- Shares are up more than 42% over the past year.
- The company boasts robust fundamentals including steady revenue and earnings growth.
- Despite its strong performance, ORLY is considered volatile and speculative —investors should use strict risk management and stop-loss strategies.
Today’s Featured Stock
Valued at $90.7 billion, O’Reilly Automotive (ORLY) is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States, serving both professional service providers and do-it-yourself customers. O'Reilly Automotive is the dominant auto parts retailer in all market areas.
What I’m Watching
I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. ORLY checks those boxes. Since the Trend Seeker signaled a buy on July 9, the stock gained 15.49%.
ORLY Price vs. Daily Moving Averages:
Barchart Technical Indicators for O’Reilly Automotive
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
O'Reilly hit a new All Time high of $107.11 in morning trading on Sept. 10.
- O'Reilly has a Weighted Alpha of +43.96.
- ORLY has an 100% “Buy” opinion from Barchart.
- The stock gained 42.24% over the past year.
- ORLY has its Trend Seeker “Buy” signal intact.
- O'Reilly is trading above its 20-, 50-, and 100-day moving averages.
- The stock made 7 new highs and gained 3.65% in the last month.
- Relative Strength Index (RSI) is at 68.66%.
- There’s a technical support level around $105.60.
Don’t Forget the Fundamentals
- $90.7 billion market capitalization.
- 37.62x trailing price-earnings ratio.
- Revenue is expected to grow 6.03% this year and another 6.57% next year.
- Earnings are projected to increase 8.69% this year and an additional 12.20% next year.
Analyst and Investor Sentiment on O’Reilly Automotive
I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping stock, it’s hard to make money swimming against the tide.
It looks like Wall Street analysts are positive on O’Reilly.
- The Wall Street analysts tracked by Barchart have issued 19 “Strong Buy,” 2 “Moderate Buy,” and 7 “Hold” opinions on the stock.
- Their price targets are between $86-$120.
- Value Line gives the stock its “Above Average” rating with a price target of $114.
- CFRA’s MarketScope Advisor rates it a “Buy” with a price target of $110.
- Morningstar thinks the stock is 71% overvalued with a fair value of $62.
- 1,054 investors following the stock on Motley Fool think the stock will beat the market while 166 think it won’t.
- 23,560 investors monitor the stock on Seeking Alpha, which rates the stock a “Buy.”
The Bottom Line on O’Reilly Automotive
O’Reilly has shown very consistent increases in both revenue and earnings for a very long time and has not disappointed long-term investors.
I caution that ORLY is volatile and even speculative in the current environment, which means investors should use strict risk management and stop-loss strategies.
Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.
Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
