Reasons to Steer Clear of These 2 Auto Stocks in Late 2026

Avatar photo

O’Reilly Automotive and Lucid Group Stock Analysis

O’Reilly Automotive (NASDAQ: ORLY) reported a solid first quarter in 2026, with sales up 8% and earnings up 16%. Despite its strong performance, the stock is down approximately 15% from its all-time highs. The company has over 6,600 stores across 48 states and operates in both retail and commercial auto parts sectors. Notably, its price-to-sales and price-to-earnings ratios are higher than their five-year averages, indicating the stock may be expensive for new investors.

In contrast, Lucid Group (NASDAQ: LCID) is struggling significantly, with its stock price down about 99% from its peak. In the first quarter of 2026, Lucid produced only 4,774 vehicles, compared to Tesla’s 451,758 vehicles. The company has also suspended its full-year production guidance and faces challenges in meeting production costs, selling merely 80% of the vehicles it manufactured in the quarter. Investors are advised to be cautious with Lucid, as it may be a risky bet until it achieves production and earnings stability.

5 Stocks Our Experts Predict Could Double In the Next Year

By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.

The free Daily Market Overview 250k traders and investors are reading

Read Now