O'Reilly Automotive (ORLY) is Accelerating New Store Openings in 2026

Aristotle Funds, an investment advisor, released its “Core Equity Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. equity markets reached new all-time highs in Q4 2025, with the S&P 500 Index rising 2.66% and the Bloomberg U.S. Aggregate Bond Index increasing by 1.10%. Within the Russell 1000 Growth Index, healthcare, communication services, and financials were the top performing sectors, while utilities, real estate, and materials lagged. The U.S. economy showed resilience. However, consumer confidence deteriorated toward year-end, raising concerns about future spending and the labor market. The Federal Reserve took a cautious approach due to mixed economic signals and uncertainty around data. Artificial intelligence remained a significant theme of the market. In this environment, the Aristotle Core Equity Fund (Class I-2) returned 3.15% in the quarter compared to the S&P 500 Index’s 2.66% return. Both allocation effects and security selection contributed to the outperformance of the Fund in the quarter. In addition, please check the Fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Aristotle Core Equity Fund highlighted stocks like O’Reilly Automotive, Inc. (NASDAQ:ORLY). Headquartered in Springfield, Missouri, O’Reilly Automotive, Inc. (NASDAQ:ORLY) is a leading automotive parts retailer that operates retail outlets in the United States. On February 26, 2026, O’Reilly Automotive, Inc. (NASDAQ:ORLY) stock closed at $91.33 per share. One-month return of O’Reilly Automotive, Inc. (NASDAQ:ORLY) was -7.19%, and its shares lost 0.27% over the past 52 weeks. O’Reilly Automotive, Inc. (NASDAQ:ORLY) has a market capitalization of $77.092 billion.

Aristotle Core Equity Fund stated the following regarding O’Reilly Automotive, Inc. (NASDAQ:ORLY) in its fourth quarter 2025 investor letter:

"O’Reilly Automotive, Inc. (NASDAQ:ORLY) detracted from performance in the fourth quarter of 2025. Although the company exceeded consensus expectations when the company reported its third quarter results at the end of October, comments on the weakening do-it-yourself (DIY) business were a concern. Inflation, which has largely been driven by tariffs, is weighing on the DIY portion of the business. The professional business, which is much larger than the DIY business, remains strong. The company is increasing the pace of new store openings in 2026."

O’Reilly Automotive, Inc. (NASDAQ:ORLY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 69 hedge fund portfolios held O’Reilly Automotive, Inc. (NASDAQ:ORLY) at the end of the fourth quarter, compared to 75 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 a list of best consumer discretionary stocks to buy. In addition, please check out our hedge fund investor letters Q4 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.