Following on the heels of yesterday’s auto-sector endorsement by Investors Intelligence, today’s Daily Alert features an update on an auto parts stock that has risen 60% since it was recommended in the Digest by Louis Navellier but, thanks to the market correction, has recently dipped below his buy-under price, giving new investors a chance to buy some here.
ORLY was recommended by Blue Chip Growth at $60.18 in Investment Digest issue 684, dated December 1, 2010.
“O’Reilly Automotive, Inc. (ORLY) may have started out as a mom-and-pop auto parts business, but with a $500 million share repurchase program currently under its belt, this company has clearly grown into a major force in the Auto Parts industry.
“This company recently announced stunning first-quarter operating results. To start, compared with Q1 2011, net income jumped 44% to $147.5 million, or $1.14 per share. Adjusted earnings weighed in at $1.14 per share, which topped the $1.04 consensus by 10%. Over the same time frame, sales rose 11% to $1.53 billion, beating analyst estimates by 3%.
“Looking ahead to the second quarter, the company expects earnings to weigh in between $1.13 and $1.17 per share, while the Street sees $1.17 in earnings per share. The company also raised its 2012 earnings guidance to $4.47 to $4.57 per share, compared with the Street view of $4.51 per share. Be sure to add shares of this Conservative stock for less than $99.”
- Louis Navellier, Blue Chip Growth, June 2012
Second Opinion: O’Reilly Automotive
“Yesterday there was one buy signal from the [autos and auto parts] group, O’Reilly Automotive (ORLY). That share is a long-term outperformer and trends are strong. Look to add on any weakness and then place a stop just under the recent lows.”
- John Gray & Michael Burke, Investors Intelligence, May 25, 2012