Positive Momentum Lifted O'Reilly Automotive (ORLY) Ahead by 20% in Q3

TimesSquare Capital Management, an equity investment management company, released its “U.S. Focus Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, all the major asset classes posted positive returns except fixed income assets outside the US. The strategy returned 4.00% (gross) and 3.78% (net) compared to a 2.78% return for the Russell Midcap Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, TimesSquare Capital U.S. Focus Growth Strategy highlighted stocks such as O’Reilly Automotive, Inc. (NASDAQ:ORLY). O’Reilly Automotive, Inc. (NASDAQ:ORLY) is a retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories. The one-month return for O’Reilly Automotive, Inc. (NASDAQ:ORLY) was -5.47%, and its shares gained 11.25% over the last 52 weeks. On December 12, 2025, O’Reilly Automotive, Inc. (NASDAQ:ORLY) stock closed at $94.11 per share, with a market capitalization of $79.62 billion.

TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding O’Reilly Automotive, Inc. (NASDAQ:ORLY) in its third quarter 2025 investor letter:

"Our preferences in the Consumer-oriented sectors lean toward value-oriented or specialty retailers, franchise models, premium brands, or support services for other consumer companies. O’Reilly Automotive, Inc. (NASDAQ:ORLY), a specialty retailer of aftermarket auto parts and accessories, surged ahead by 20%. The company reported a strong second quarter with growth in same store sales driven by positive momentum in both do-it-for-me professional mechanic and DIY. Management raised its full-year outlook for sales, same store comparisons, and earnings. Margin projections were maintained to account for the potential impact of tariffs."

O’Reilly Automotive, Inc. (NASDAQ:ORLY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 75 hedge fund portfolios held O’Reilly Automotive, Inc. (NASDAQ:ORLY) at the end of the third quarter, which was 62 in the previous quarter. While we acknowledge the potential of O’Reilly Automotive, Inc. (NASDAQ:ORLY) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered O’Reilly Automotive, Inc. (NASDAQ:ORLY) and shared the list of top stocks to watch after Federal Reserve’s rate cut. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.