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Springfield, Missouri-based O'Reilly Automotive, Inc. (ORLY) operates as a retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories. Valued at $72.4 billion by market cap, the company sells its products to do-it-yourself customers, professional mechanics, and service technicians.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and ORLY perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the specialty retail industry. ORLY maintains an efficient distribution network. With over 6,000 stores in the U.S. and Mexico, O'Reilly's brand is known for quality and reliability, leading to a loyal customer base.
Despite its notable strength, ORLY shares touched their 52-week high of $1273.60 in the last trading session. Over the past three months, ORLY stock gained 12.1%, outperforming the Dow Jones Industrials Average’s ($DOWI)8.6% gains during the same time frame.
In the longer term, shares of ORLY rose 33.3% on a YTD basis and climbed 33.9% over the past 52 weeks, outperforming DOWI’s YTD gains of 17.4% and 22.1% returns over the last year.
To confirm the bullish trend, ORLY has traded above its 50-day and 200-day moving averages since mid-June, with slight fluctuations.
O'Reilly has outperformed due to growth in the auto parts market, store expansion efforts, and a strong distribution network. The company's recent expansion into Canada with the acquisition of Groupe Del Vasto and its successful retail strategy have driven exceptional same-store sales growth. With strong cash flow generation and a robust buyback program, O'Reilly is well-positioned for continued success.
On Oct. 23, ORLY shares closed down marginally after reporting its Q3 results. Its EPS of$11.41 fell short of Wall Street expectations of $11.53. The company’s revenue was $4.36 billion, failing to meet Wall Street forecasts of $4.43 billion. ORLY expects full-year EPS to be $40.60 to $41.10, and expects revenue in the range of $16.6 billion to $16.8 billion.
ORLY’s rival, AutoZone, Inc. (AZO) shares lagged behind the stock, with a 29.5% gain on a YTD basis and 27.7% returns over the past 52 weeks.
Wall Street analysts are moderately bullish on ORLY’s prospects. The stock has a consensus “Moderate Buy” rating from the 25 analysts covering it, and the mean price target of $1302.47 suggests a potential upside of 2.9% from current price levels.
