NEW YORK, NY / ACCESSWIRE / July 7, 2017 / Shares of AutoZone and O'Reilly Automotive both sank on Wednesday, making investors worry if any auto-parts company is safe right now. O'Reilly revealing that a key sales metric, same-store sales growth, in the second quarter fell short of guidance led to the stock's downfall yesterday as well as pushed shares of AutoZone lower.

RDI Initiates Coverage on:

AutoZone, Inc.
https://ub.rdinvesting.com/news/?ticker=AZO

O'Reilly Automotive, Inc.
https://ub.rdinvesting.com/news/?ticker=ORLY

AutoZone, Inc.'S shares were feeling the burn as they dropped 9.60% yesterday after O'Reilly Automotive, another company in the space, warned that their second quarter same-store sales saw a smaller growth than expected for the period. Investors became concerned that other companies such as AutoZone, may not be able to hit their targets either. Chris Horvers, a senior analyst at JPMorgan at least thinks the stock could be an opportunistic buy right now. He said, "Stepping back, we believe we are cycling through the trough in the auto parts retail stock performance. Moreover, in our view, the stocks are overreacting to ORLY's preannouncement and would opportunistically buy AZO and AAP."

Access RDI's AutoZone, Inc. Research Report at:
https://ub.rdinvesting.com/news/?ticker=AZO

O'Reilly Automotive, Inc. closed down 18.89% on Wednesday and hit a new low of $173.89 during intra-day trading. This was the lowest level for the stock since 2014. Traders learned that the company has warned that a key sales metric, same-store sales growth, in Q2 has fallen short of expectations. This led many traders to wonder about the sector's future and dragged other auto-part retailers down as well. O'Reilly revealed in an SEC filing that same-store sales saw a 1.7% increase in the quarter ended June 30, but had earlier estimated that the growth would be between 3% and 5%. FactSet had called for a growth of 3.9%. CEO Greg Henslee commented, "The comparable store sales shortfall will also have a consequent impact on our operating profitability." JPMorgan has lowered its price target on the company from $295 to $210 and has a "neutral" rating on the stock.

Access RDI's O'Reilly Automotive Research Report at:
https://ub.rdinvesting.com/news/?ticker=ORLY

Our Actionable Research on AutoZone, Inc. (NYSE: AZO) and O'Reilly Automotive, Inc. (NASDAQ: ORLY) can be downloaded free of charge at Research Driven Investing.

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SOURCE: RDInvesting.com