Today’s 3 Best Stocks: O’Reilly Automotive Inc (ORLY), Apollo Group Inc (APOL) and More

Page 1 of 2

The broad-based S&P 500 was treated to positive news early this morning, when weekly jobless claims figures pointed to a slight drop in week-over-week claims, to 366,000. Even with the previous week’s rise, this would signal a moderately growing labor market.

This was, unfortunately, not enough to save the markets from a mid-day shellacking, which was brought upon by weak earnings from the technology sector. In fact, you’d struggle to find a tech winner anywhere near the best performers of the day within the S&P 500. A revenue shortfall from Akamai Technologies, Inc. (NASDAQ:AKAM), a content-delivery management company, sent the tech sector into a tizzy. Akamai, which should be seeing big benefits from an increase in web traffic and data transfers, forecast revenue of $352 million to $362 million in the first quarter, which underwhelmed analysts looking for $370 million. Akamai wasn’t alone, either, as Teredata, LSI Corp (NASDAQ:LSI), Micron Technology, Inc. (NASDAQ:MU), and F5 Networks, Inc. (NASDAQ:FFIV) were all among the worst performers.

O'Reilly Automotive Inc (NASDAQ:ORLY)Given the tech crunch placed on the index from the get-go, the S&P 500 finished the day lower by 2.73 points (-0.18%), to close at 1,509.39.

Tech earnings may have failed to impress, but other sectors, and a field of not-so-common names, did their best to fill the gap.

Auto parts retailer O’Reilly Automotive Inc (NASDAQ:ORLY) was a standout, after reporting better-than-expected fourth-quarter results, and boosting its 2013 forecast. On the heels of 4.2% same-store sales growth, O’Reilly reported a 7% increase in sales, and an 8% increase in profits, as gross margin expanded 50 basis points. Looking ahead, O’Reilly is forecasting same-store sales growth of 3%-5% in 2013, with EPS of $5.57-$5.67, well ahead of the $5.44 that Wall Street expected. Considering that new car sales growth is expected to slow in 2013, this could play perfectly into the hands of auto parts retailers and consumers looking to extend the life of their current automobiles. Shares advanced 8% on the day.

Shareholders of for-profit educator Apollo Group Inc (NASDAQ:APOL) had reason to celebrate, with shares rising just shy of 3% on the day. The reason was a much-better-than-expected report from peer DeVry Inc. (NYSE:DV) , which sent its shares up 16.4%. Even though DeVry’s revenue fell nearly 4%, EPS came in at $0.87, trouncing the $0.59 expected by Wall Street, signaling that the company’s move into international markets is paying off. Investors hope that Apollo will soon be sharing in that same success with campuses located in Central and South America. However, consider me much less enthusiastic about Apollo’s chances, as I’m keeping a healthy distance from this sector.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!