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Valued at a market cap of $75.5 billion, O'Reilly Automotive, Inc. (ORLY) is a retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories. The Springfield, Missouri-based company serves both professional service providers and do-it-yourself customers and provides various new and remanufactured automotive hard parts.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and ORLY fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the specialty retail industry. The company’s strengths lie in its extensive distribution network, strong brand recognition, and customer-focused retail and wholesale operations. It benefits from a wide product assortment, efficient supply chain management, and a growing footprint of stores.
This auto parts retailer is currently trading 5% below its 52-week high of $1,389.05, reached recently on Mar. 4. Shares of O'Reilly have gained 4.9% over the past three months, considerably outpacing the broader Consumer Discretionary Select Sector SPDR Fund’s (XLY) nearly 11.7% decline during the same time frame.
On a YTD basis, shares of ORLY are up 11.2%, compared to XLY’s 8.3% loss over the same time frame. In the longer term, ORLY has soared 21.1% over the past 52 weeks, outpacing XLY’s 13.6% return.
To confirm its bullish price trend, ORLY has been trading above its 200-day moving average since mid-June 2024 and has remained above its 50-day moving average since mid-January.
On Feb. 5, ORLY reported its Q4 results, but despite exceeding expectations with adjusted earnings of $9.96 per share and revenue of $4.1 billion, its stock declined 1.3% the following day. Investor sentiment took a hit due to ORLY's cautious 2025 guidance, which projects comparable store sales growth at a lower range of 2% to 4%, signaling concerns about potential economic challenges. This conservative outlook likely contributed to the stock's decline.
ORLY’s outperformance becomes more evident when compared to its rival, Advance Auto Parts, Inc. (AAP), which declined 52% over the past 52 weeks and 25.2% on a YTD basis.
Looking at ORLY’s recent outperformance, analysts remain highly optimistic about its prospects. The stock has a consensus rating of “Strong Buy” from the 27 analysts covering it, and the mean price target of $1440.62 suggests a modest 9.2% premium to its current levels.
