O’Reilly Automotive Closes at New Highs Amid Investor Confidence
Solid Performance and Strategic Growth Keep ORLY Stock on the Rise
Springfield, Missouri, is home to O’Reilly Automotive, Inc. (ORLY), a leading retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories. With a market cap of $72.4 billion, O’Reilly caters to do-it-yourself customers, professional mechanics, and service technicians alike.
Stocks valued at $10 billion or more are classified as “large-cap stocks,” and O’Reilly fits this profile well. The company’s size and influence in the specialty retail sector are clear, supported by its efficient distribution network. O’Reilly boasts over 6,000 stores across the U.S. and Mexico, earning a reputation for quality and reliability that cultivates a loyal customer base.
Recently, ORLY shares reached a 52-week high of $1,273.60 during the last trading session. Over the past three months, ORLY stock has risen by 12.1%, outperforming the Dow Jones Industrial Average (DOWI), which gained 8.6% in the same period.
In terms of annual performance, ORLY shares have climbed 33.3% year-to-date and 33.9% over the past 52 weeks. This is notably better than the DOWI’s year-to-date growth of 17.4% and 22.1% for the previous year.
Further indicating a positive trend, ORLY has maintained trading above its 50-day and 200-day moving averages since mid-June, showing just minor fluctuations.
This strong performance can be attributed to growth in the auto parts sector, expansion efforts, and a solid distribution network. Notably, O’Reilly’s recent entry into Canada through the acquisition of Groupe Del Vasto, along with its effective retail strategy, has led to impressive same-store sales growth. With strong cash flow and an active buyback program, O’Reilly is in a favorable position for ongoing success.
On October 23, ORLY reported its Q3 earnings, with shares closing slightly lower. The company recorded an earnings per share (EPS) of $11.41, which fell short of Wall Street’s expectation of $11.53. Revenue came in at $4.36 billion, missing forecasts of $4.43 billion. O’Reilly projects a full-year EPS in the range of $40.60 to $41.10, with anticipated revenue between $16.6 billion and $16.8 billion.
In comparison, rival AutoZone, Inc. (AZO) is lagging, showing only a 29.5% gain year-to-date and 27.7% returns over the past year.
Wall Street analysts are moderately optimistic about ORLY’s future. The stock holds a consensus “Moderate Buy” rating from 25 analysts, with a mean price target of $1,302.47 indicating a potential upside of 2.9% from current prices.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. For more details, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
