And the auto parts retailer could rise even more due to strong earnings and sales growth. But another likely reason is Big Money lifting the stock.
O’Reilly Automotive Attracts Big Money
So, what’s Big Money? Said simply, that’s when a stock goes up in price alongside chunky volumes. It’s indicative of institutions betting on the shares.
Smart money managers are always looking for the next hot stock. And O’Reilly Automotive has many fundamental qualities that are attractive.
This sets up well for the stock going forward. But how the shares have been trading points to more upside. As I’ll show you, the Big Money has been consistent in the shares.
You see, fund managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.
That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all the Big Money signals ORLY has made the last two years.
The last few weeks have seen Big Money activity, too. Each green bar signals big trading volumes as the stock ramped in price:
In the last two years, the stock attracted 15 Big Money buy signals. Generally speaking, recent green bars could mean more upside is ahead.
Now, let’s check out technical action grabbing my attention:
- 1-month outperformance vs. Consumer Discretionary Select Sector SPDR ETF (+4.8% vs. XLY)
Outperformance is important for leading stocks.
O’Reilly Automotive Fundamental Analysis
Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, O’Reilly Automotive has been growing sales and earnings at double-digit rates. Take a look:
- 3-year sales growth rate (+11.9%)
- 3-year EPS growth rate (+24.9%)
Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.
In fact, ORLY has been a top-rated stock at my research firm, MAPsignals, for years. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
ORLY has a lot of qualities that are attracting Big Money. It’s made this list 29 times since 2010, with its first appearance on 03/22/2010…and gaining 1,568.4% since. The blue bars below show the times that O’Reilly Automotive was a top pick:
It’s been a top stock in the consumer discretionary sector according to the MAPsignals process. I wouldn’t be surprised if ORLY makes additional appearances in the years to come. Let’s tie this all together.
O’Reilly Automotive Price Prediction
The O’Reilly Automotive rally could have further to go. Big Money buying in the shares is signaling to take notice. Shares could be positioned for further upside. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no positions in ORLY at the time of publication.
Learn more about the MAPsignals process here.