< The 2015 All-America Research Team
Gregory Melich
Evercore ISI
First-Place Appearances: 4
Total Appearances: 5
Analyst Debut: 2011
Coverage of U.S. broadline retailers is now reflected in this sector, added to that of hardlines, and the name at the top of the roster remains as it has been since 2012: Gregory Melich. In general, the Evercore ISI researcher, 45, expects these companies to perform in line with the broad market. Subsectors likely to deliver slightly stronger results are auto parts, home improvement and membership models, he believes. From that group, Springfield, Missouri–based O’Reilly Automotive is one preferred name. In February 2014, Melich elevated his rating on the equipment, parts and tools retailer from neutral to buy, predicting that industry consolidation would drive increased earnings and top-line potential. Since then, O’Reilly’s sales growth has accelerated to 10.2 percent from 7.5 percent, while operating margins widened to 19 percent from 16.5 percent. The stock has followed suit, advancing to $246.31 as of mid-September, for a gain of 88.1 percent that bested the S&P 500 by 78.3 percentage points. “Greg is one of the more thought-provoking analysts in the sector,” observes one investor. “His understanding of industry trends and his thorough analytical work help him stand out.”