/O)
Missouri-based O'Reilly Automotive, Inc. (ORLY) is a leading retailer in the automotive aftermarket industry, renowned for its extensive inventory of automotive parts, tools, and accessories. With a market cap of $63.71 billion, ORLY stands as a dominant player in the retail sector, providing top-tier customer service and expert advice to both professional mechanics and do-it-yourself customers. Competing vigorously with other automotive retailers, O'Reilly’s primary rivals include AutoZone (AZO), which is recognized for its vast product range and store network.
Companies valued at $10 billion or more are generally considered "large-caps," and O'Reilly Automotive fits this criterion perfectly, signifying its substantial size, stability, and influence in the automotive aftermarket industry.
ORLY shares are trading 7.5% below their 52-week high of $1169.11, which they hit on Mar. 21. Also, the stock has declined 7% over the past three months, underperforming the S&P 500 Index’s ($SPX) 4.3% returns over the same time frame.
Longer term, ORLY is up 13.9% on a YTD basis, and the shares have gained 15.3% over the past 52 weeks. In comparison, the S&P 500 has gained 14.6% in 2024 and 25.2% over the past year.
However, ORLY has been recently trading above its 50-day and 200-day moving average.
ORLY reported its Q1 results on Apr. 24. The company reported a profit of $547.2 million, or $9.20 per share, surpassing Wall Street expectations of $9.18 per share. The company's revenue for the period was $3.98 billion, exceeding the forecasted $3.96 billion. For the full year, O'Reilly Automotive projects earnings per share between $41.35 and $41.85, with revenue ranging from $16.8 billion to $17.1 billion.
Shares of ORLY fell 4% the day after the company reported its earnings despite strong first-quarter financial results due to investor concerns over its valuation and profit margin.
Highlighting the contrast in performance, ORLY's competitor, AZO, has outperformed ORLY and SPX, with a 15.7% gain on a YTD basis.
Despite ORLY's recent underperformance compared to SPX, analysts are moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from 22 analysts in coverage. The mean price target of $1152.70 reflects a 6.6% premium over current levels.
On the date of publication, Rashmi Kumari 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 solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
