Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our thesis.
What: Shares of O'Reilly Automotive (NASDAQ: ORLY ) were speeding ahead today, gaining as much as 11%, and finishing up 9% on a strong earnings report.
So what: The auto-parts retailer said sales improved 9%, to $1.62 billion, topping estimates of $1.6 billion, while earnings also impressed, coming in at $1.40 against the consensus at $1.32. Same-store sales clicked up 5.4%, and finished its 21st consecutive year with positive comps. CEO Greg Henslee also said, "2014 was off to a strong start with the opening of our 25th distribution center," and projected 3% to 5% same-store sales growth for the current year.
Now what: For the full year, O'Reilly expects EPS of $6.74 to $6.84, in line with estimates at $6.78, and revenue of $7.0 to $7.2 billion against expectations of 7.06 billion. The company also forecasts 200 store openings, growing its base by about 5%. Another positive sign for the industry came from peer Advanced Auto Parts, which reported strong earnings today. With same-store sales growing and new stores coming on line, O'Reilly should steadily move higher during the next year.
What's set to pop in 2014?
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report, "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.