O’reilly Automotive Stock Fair Value Calculation – O’Reilly Automotive Stock Slips Amidst Market Turbulence

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O’REILLY ($NASDAQ:ORLY): In recent years, O’Reilly Automotive Inc. has experienced steady growth and has consistently outperformed its competitors in terms of stock performance.

However, on Monday, the company’s stock slipped amidst market turbulence. The stock market is known for its volatility, and Monday’s trading session was no exception. This decline was attributed to rising bond yields and fears of inflation. As a result, investors were cautious, leading to a sell-off of stocks across various industries. Unfortunately, O’Reilly Automotive Inc. was not immune to this market turbulence. The company’s stock declined by 2.61%, reaching a price of $1137.07. This underperformance by O’Reilly Automotive Inc. may be attributed to the company’s heavy focus on do-it-yourself (DIY) customers, who may be more likely to cut back on spending during economic uncertainty. It is worth noting that despite the decline in stock price, O’Reilly Automotive Inc. has consistently reported strong financial results. This demonstrates the company’s resilience and ability to weather market fluctuations. In conclusion, while O’Reilly Automotive Inc. may have experienced a slip in stock price amidst market turbulence, the company remains a strong player in the automotive industry. Its track record of steady growth and strong financial performance are a testament to its success. As the market stabilizes, it is likely that O’Reilly Automotive Inc. will continue to thrive and provide value to its shareholders.

Price History

O’Reilly Automotive, a leading retailer of automotive aftermarket parts, experienced a dip in its stock value on Monday amidst market turbulence. The company’s stock opened at $1164.7 and closed at $1137.1, which is a 2.6% decrease from its previous closing price of $1167.5. This decline in stock value can be attributed to the overall volatility and uncertainty in the stock market. This has directly impacted O’Reilly Automotive’s business operations, as the company relies heavily on the availability of automotive parts for its sales. Apart from the effects of the pandemic, O’Reilly Automotive also faces stiff competition from other major players in the industry, such as AutoZone and Advance Auto Parts. These competitors have been making strategic moves to gain a larger market share, which can also contribute to the fluctuation in O’Reilly Automotive’s stock value. Furthermore, the overall economic uncertainty has also affected consumer spending and confidence, which can have a direct impact on O’Reilly Automotive’s sales and revenues. As consumers are facing financial challenges, they may be less likely to spend on non-essential items such as automotive parts and repairs. It is worth noting that despite the dip in stock value, O’Reilly Automotive’s financial performance remains strong.

However, the current market volatility and uncertainty have caused some investors to sell off their shares, which has contributed to the decline in stock value. In conclusion, O’Reilly Automotive’s stock slip can be attributed to various factors such as the ongoing pandemic, competition in the industry, and economic uncertainty. However, the company’s strong financial performance and strategic positioning in the market could help it weather the storm and bounce back in the long run. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for O’reilly Automotive. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for O’reilly Automotive. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for O’reilly Automotive. More…

Key Ratios Snapshot

Some of the financial key ratios for O’reilly Automotive are shown below. More…

Analysis – O’reilly Automotive Stock Fair Value Calculation

As an analysis firm, GoodWhale has thoroughly researched and evaluated the fundamentals of O’REILLY AUTOMOTIVE. Our findings show that the fair value of O’REILLY AUTOMOTIVE’s share is currently around $905.2, based on our proprietary Valuation Line method. This indicates that the stock is currently overvalued by 25.6%, as it is currently trading at $1137.1. To determine our fair value estimate for O’REILLY AUTOMOTIVE, we looked at various financial metrics such as revenue, earnings, and cash flow. Using these data points, we calculated a Valuation Line that takes into account the company’s historical performance and expected future growth. Based on our analysis, we believe that O’REILLY AUTOMOTIVE’s current stock price is not justified by its fundamentals. This means that investors may be paying too much for the stock, and there is a potential for the stock price to decrease in the future. We advise caution to investors considering buying O’REILLY AUTOMOTIVE stock at its current price, as it may not be a wise investment decision. It is important to always conduct thorough research and analysis before making any investment decisions to minimize risk and maximize potential returns. In conclusion, our analysis suggests that O’REILLY AUTOMOTIVE’s stock is currently overvalued and may be a risky investment at its current price. We will continue to monitor the company’s performance and adjust our Valuation Line accordingly. More…

Peers

O’Reilly Automotive Inc is an American automotive parts retailer that provides automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States. Headquartered in Springfield, Missouri, it has over 5,000 stores in 47 states. O’Reilly Automotive Inc operates under the O’Reilly Auto Parts, Chattersnap Auto Parts, and CSK Auto Inc names.

Its main competitors are AutoZone Inc, Five Below Inc, Advance Auto Parts Inc.

– AutoZone Inc ($NYSE:AZO)

AutoZone Inc is an American retailer of automotive parts and accessories, with over 6,000 stores across the United States. The company has a market cap of $43.79B as of 2022 and a Return on Equity of -61.62%. AutoZone is the largest retailer of automotive parts and accessories in the United States, with over 6,000 stores across the country. The company offers a wide variety of products and services for both do-it-yourselfers and professional mechanics. AutoZone is a publicly traded company on the New York Stock Exchange under the ticker symbol AZO.

– Five Below Inc ($NASDAQ:FIVE)

Five Below Inc is a publicly traded company with a market cap of 7.51B as of 2022. The company has a Return on Equity of 18.02%. Five Below Inc is a specialty retailer that offers a variety of products, including cosmetics, apparel, accessories, and more, all priced at $5 or less. The company has over 700 stores across the United States and plans to continue expanding its brick-and-mortar footprint. Five Below Inc is headquartered in Philadelphia, Pennsylvania.

– Advance Auto Parts Inc ($NYSE:AAP)

Advance Auto Parts is a leading retailer of automotive parts, accessories and maintenance items in the United States. The company operates over 5,000 stores and serves both professional and do-it-yourself customers. Advance Auto Parts has a market cap of 10.3B as of 2022 and a Return on Equity of 16.16%. The company’s strong financial performance and solid market position make it a compelling investment option for investors looking for exposure to the automotive sector.

Summary

On Monday, O’Reilly Automotive Inc. stock underperformed when compared to its competitors, with shares slipping 2.61% to $1137.07. This was part of a general trend of poor performance for the stock market. Investors may want to monitor O’Reilly Automotive Inc.’s stock closely to see if it continues to underperform or if it bounces back in future trading sessions.

This underperformance could be attributed to a variety of factors, such as market conditions or company-specific news. In order to make informed investment decisions, investors should carefully analyze and monitor the performance of O’Reilly Automotive Inc. and its competitors in the market.