O'Reilly Automotive called top pick in auto parts sector

|By:, SA News Editor

O'Reilly Automotive (NASDAQ:ORLY) is called the top pick in auto retailing by Barron's.

"O’Reilly’s veteran management should be able to steer clear of potholes more nimbly than slower-growing and bigger rivals AutoZone (NYSE:AZO) and Advance Auto Parts (NYSE:AAP)," writes Jack Hough.

"And its shares are pretty cheap and merit a long-term bet. At current levels, they trade at an 18% discount to their two-year average multiple of 23.8 times forward earnings," he notes.

Shares of O'Reilly Automotive are down 5% YTD.