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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Jenna who wrote (26306)	3/6/1999 1:31:00 AM
From: Jenna	Respond to of 120523

ORLY was on our Earnings Play Calendar on Thursday, February 25.. On Wednesday March 3rd.. it was featured on a full page spread in "Investor's Business Daily" Companies in the News.. ..The retail and commercial segments of the auto aftermarket are converging and O'Reilly is well positioned to grow and gain market share in this environment," said L. Keith Mullins, an analyst at Salomon Smith Barney Holdings Inc. O'Reilly operates on what it has called a "dual strategy." Half its sales are to professional mechanics and the rest to do-it-yourselfers. It is the only U.S. retail auto parts chain that can claim a 50-50 split. At AutoZone, sales to the commercial segment now make up about 15% of revenue. Competitors have made strides getting into the commercial business, but they have a ways to go. ....Sales to commercial repair shops are experiencing higher growth, which is why everyone in the business is now attempting to increase commercial sales." In most of its markets, O'Reilly's main rivals are Menphis, Tenn. based AutoZone and Philadelphia based Pep boys. A main edge O'Reilly holds over the two is its strength in marketing to professional mechanics. The total auto parts aftermarket in the U.S. is worth about $80 billion, Helm says. Commercial revenue makes up about two thirds of the industry with the DIY side comprising the rest. Sales to repair shops are expected to increase 5% to 10% annually over the next feew years, while the DIY (do it yourselfers) market is expected to grow less than 5%. Historically, the auto parts business has been fairly recession resistant. Most people get their care fixed during good times or bad. in fact, an economic downturn may even give the industry a boost. In a recession, you'll put off buying the new car and get the old one fixed up instead...