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

Discussion in 'Stocks' started by ScroogeMcDuck, May 9, 2016.

  1. 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.