StockStory favors O’Reilly over American Eagle and Arhaus
The publisher highlights O’Reilly’s sales growth and margins while pointing to weaker growth or profitability measures at two other retailers.
Key takeaways
- StockStory reported flat retail industry returns over six months, versus a 13.5% S&P 500 gain.
- American Eagle's revenue grew 4.3% annually over three years, according to StockStory.
- O’Reilly's same-store sales averaged 4.9% growth over two years, the publisher said.
StockStory named O’Reilly Automotive its preferred consumer retail stock, while saying it would avoid American Eagle Outfitters and Arhaus. The publisher said retail industry returns were flat over the past six months, while the S&P 500 gained 13.5%.
For American Eagle, StockStory cited annual revenue growth of 4.3% over the past three years. It also pointed to a lack of new stores and what it described as low returns on capital.
The publisher said Arhaus’s earnings per share fell by 24.2% annually over three years even as revenue grew. It also cited disappointing same-store sales over the past two years and a revenue base of $1.41 billion.
StockStory’s case for O’Reilly included average same-store sales growth of 4.9% over two years. It also pointed to the company’s 19.4% operating margin and 42.2% return on invested capital.
This article was produced with the help of AI technology. Source: Yahoo Finance
