Categories: Alpha Algorithm HotlinesStock Market News

Doubling Up on the Automotive Sector

This week, the Alpha Algorithm churned out another stock in the booming U.S. automotive sector — similar to your current recommendation in Autozone (AZO). And much like AZO, this stock has also attracted the attention of six different algorithm-based strategies.

OReilly Automotive, Inc. (ORLY), together with its subsidiaries, retails aftermarket auto parts, tools, supplies, equipment and accessories in the United States. On Feb. 11, ORLY reported a 24% increase in earnings to $2.19 per share in the fourth quarter of 2015 from $1.76 in the year-ago quarter. Earnings also exceeded consensus estimates by 12 cents.

*ORLY (blue) vs. the S&P 500 (red) over one year*

Six Top Investment Strategies Betting on O’Reilly Automotive Inc. (ORLY)

Broker’s Best

One of Raymond James’ selection of stocks expected to outperform the S&P 500 over either a six- or 12-month period.

Momentum Model

The stock is among the top approximately 100 U.S.-listed companies to demonstrate powerful relative strength characteristics relative to the 3,000 largest U.S.-listed companies.

IBD Top Fifty

It is a Top 50 stock based on Investor’s Business Daily’s proprietary trading formula to identify 50 stocks that meet one of seven different catalysts. The “CAN SLIM” strategy identifies companies with either fundamental (improving earnings, new product) or technical (upward stock move on strong volume) catalysts.

Value Line Model

The stock is among the top 100 stocks, from a universe of 1,700, to which Value Line gives a no. 1 ranking in its Timeliness Ranking System.

Shareholder Yield

It is among companies (a) paying cash dividends, (b) engaging in net share repurchases and (c) paying down debt on their balance sheets.

Large-Cap Growth

The stock is among the top 50 large-capitalization U.S. growth stocks generated through a rigorous 10-factor fundamental screening process.

Recommendation

Buy O’Reilly Automotive, Inc., (ORLY) at market today.

Place your stop at $248.

Options

With the stock currently technically overbought, I am holding off on recommending options on the stock today.

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world. He was the Editor of The Global Guru, a free weekly e-newsletter, and also edited the trading services Momentum Trader Alert, which focused on making short-term profits in the hottest markets in the world, and The Alpha Algorithm, which was designed specifically to deliver big, fast triple-digit winners, month after month. He was also the editor of Smart Money Masters, a monthly service focused on longer term investments recommended by the brightest minds in the business. Mr. Vardy has been a regular commentator on CNN International and the Fox Business Network. He has also published articles in The New Republic, The World and I, and The Baker & McKenzie Legal Review. The Global Guru/Nicholas Vardy has been cited in The Wall Street Journal, Newsweek, Fox Business News, CBS MarketWatch, Yahoo! Finance, and MSN Money Central. Mr. Vardy graduated from Stanford with a B.A. — with honors and distinction — in both Economics and History, and he also earned an M.A in Modern European Intellectual History. After winning a Fulbright Scholarship, he earned a J.D. degree at Harvard Law School where he was an editor of the Harvard International Law Journal. When not uncovering investment opportunities for his subscribers and investors, Mr. Vardy is a keep-fit enthusiast and an avid student of classical music.