How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in O'Reilly Automotive (ORLY) ten years ago? It may not have been easy to hold on to ORLY for all that time, but if you did, how much would your investment be worth today?
O'Reilly Automotive's Business In-Depth
With that in mind, let's take a look at O'Reilly Automotive's main business drivers.
O'Reilly Automotive, Inc. is a leading specialty retailer of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States. Founded in 1957, O'Reilly initially operated from a single store in Springfield, MO. The company’s stores offer several services and programs to customers, which include battery diagnostic testing, check engine light code extraction and loaner tool program, among others. The company offers vehicle accessories, such as floor mats and seat cover as well as maintenance items like antifreeze, engine additives, filters, fluids, lighting and wiper blades.
Besides these, it provides new as well as remanufactured automotive hard parts (such as alternators, batteries, brake system components, belts, chassis parts, driveline parts, engine parts and fuel pumps), maintenance items, accessories, a complete range of auto body paint and related materials, automotive tools and professional service equipment.
The company sells products to both Do-it-Yourself (DIY) customers and Do-it-for-Me (DIFM) or professional installers. The company follows a dual-market strategy by serving both DIY and DIFM customers and is among the leading companies in both markets.
The automotive aftermarket items industry is a highly competitive industry. O'Reilly’s presence in the market, customer service, product availability, store location, brand recognition price and store location position the company in a competitive position among peers in the industry. The company’s omnichannel growth strategies are focused on offering customers an enhanced and seamless shopping experience through variety of digital and physical channels.
The auto retailer has been expanding its physical presence through opening or acquiring stores while maintaining the existing ones. As of Dec. 31, 2024, O’Reilly’s total store count was 6,378 across 48 U.S. states, Puerto Rico, Canada and Mexico.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in O'Reilly Automotive a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in July 2015 would be worth $5,886.59, or a gain of 488.66%, as of July 15, 2025, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500's gained 197.24% and the price of gold went up 179.60% over the same time frame.
Analysts are forecasting more upside for ORLY too.
O'Reilly has been generatingrecord revenues for 32 consecutive years and the trend is likely to continue on the back of growth in the auto parts market and vehicle longevity. Store expansion efforts, a strong distribution network and a customer-centric business model bode well for ORLY. Encouragingly, the companyplans to increase its inventory levelfor the rest of the year to keep products available in all the markets it serves.However, the effect of high prices, elevated interest rates and energy costs on consumers remain a concern for the company. Rising SG&A expenses are likely to put pressure on its margin. Moreover, a stretched balance sheetmight restrict its financial flexibility and limit growth. High capex needsto develop advanced superior offerings might limit its cash flows. Thus, the stock warrants a cautious stance.
Shares have gained 5.67% over the past four weeks and there have been 4 higher earnings estimate revisions for fiscal 2025 compared to none lower. The consensus estimate has moved up as well.
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O'Reilly Automotive, Inc. (ORLY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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