/O)
Valued at $66.42 billion by market cap, O'Reilly Automotive, Inc. (ORLY) is a retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories. Based in Springfield, Missouri, the company serves professional service providers and do-it-yourself customers.
Shares of this automotive parts retailer have underperformed the broader market over the past 52 weeks. ORLY has gained 21.1% over this time frame, while the broader S&P 500 Index ($SPX) has soared 27.7%. But In 2024, shares of ORLY are up 18.7%, slightly surpassing SPX’s 18% gains on a YTD basis.
Zooming in further, ORLY has slightly lagged behind the VanEck Retail ETF’s (RTH) 21.4% gains over the past 52 weeks but has outpaced the ETF’s 11.4% returns on a YTD basis.
Shares of ORLY gained 4% following its Q2 earnings release on Jul. 24 despite its earnings of $10.55 missing Wall Street estimates of $10.95 per share, and revenues of $4.27 billion missing the estimates of $4.32 billion. The surge in the stock price was primarily driven by a year-over-year increase in revenues and earnings fueled by growth in comparable store sales and efficient growth strategies. The company expects full-year earnings to be $40.75 to $41.25 per share, with revenue in the range of $16.6 billion to $16.9 billion.
For the current fiscal year, ending in December, analysts expect ORLY’s EPS to grow 6.9% year over year to $41.13. The company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on another occasion.
Among the 22 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 14 “Strong Buy” ratings, one “Moderate Buy,” and seven “Holds.”
On Aug. 22, TD Cowen maintained a “Buy” rating on O'Reilly Automotive and reaffirmed its price target of $1275—the Street-high price target, implying a potential upside of 13.1% from the current price levels.
The mean price target of $1,177.33 represents a premium of 4.4% to ORLY’s 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.
