Why I'm long AZO, long ORLY, short AAP

Same industry, different fundamental ratios

Long AZO:
PE: 20.5
Net income growth: ~8% and flat
Profit Margin: 11.5% and rising
Return on Assets: 14.7%

Long ORLY:
PE: 27.5
Net income growth: ~15-20% and flat
Profit Margin: 12% and rising
Return on Assets: 14% and rising

Short AAP:
PE: 23.7
Net income growth: 6.8% and falling
Profit Margin (TTM): 4.8% and falling
Return on Assets: 5.8% and falling consistently every year for 4 years.
 
Back
Top