Score 8.2 (out of 10): O’REILLY AUTOMOTIVE INC sets up for +14.7% rally in 3 months

69

What’s Going On Here?

O’REILLY AUTOMOTIVE is an auto parts retailer. O’Reilly Automotive’s EPS has grown 24% each year, compound, over three years and EPS tend to lead share prices – in general. Two weeks ago, the company came out with earnings of $8.07 per share versus Consensus Estimate of $6.99 per share, representing a surprise of 15.45%.

Why Now?

O’REILLY AUTOMOTIVE INC has triggered a new technical analysis signal. During similar occasions, O’REILLY AUTOMOTIVE INC shares had a median return of +14.7%, over the following 3 months – based on 8 historical occasions with 6 of those showing positive returns (75%). This buy signal for O’REILLY AUTOMOTIVE INC received a high score of 8.2 (out of 10). This insight was generated on 2022-January-26 with last price of 630.82.

What’s This Company About?

O’REILLY AUTOMOTIVE INC is in the Retail-Auto Parts business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. Ticker symbol: ORLY US.

What’s My Risk / Reward and Time Horizon?

We found 3 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 723.43 (+14.7%) has been reached. Based on O’REILLY AUTOMOTIVE INC’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 628.32 (last price at 630.82), which is equivalent to a -0.4% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ shown under (2), etc. 

Previous episodes:

13.1% (January-2021), -1.8% (October-2020), -7.3% (44579-2020), 16.3% (July-2019), 4.5% (May-2019), 17.9% (December-2018), 16.3% (April-2018), 18.7% (July-2017).

Historical Chart:

———————————————————————

Summary:

NameO’REILLY AUTOMOTIVE INC
ViewUp
Star (1 to 10)8.2
Target+14.7%
Time2 months
Hit Rate75%

Popular Insights:

Leave a Reply