O'Reilly Automotive, Inc. (ORLY): Among Charles Akre's and John Neff's Stock Picks With Huge Upside Potential

We recently published an article titled Charles Akre's and John Neff's 10 Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where O'Reilly Automotive, Inc. (NASDAQ:ORLY) stands against the other stocks with huge upside potential according to Charles Akre and John Neff.

The current market environment of the U.S. has volatility as its new norm, and prudent investors are seeking refuge in the guidance of seasoned experts. Among these experts is Charles Akre, the founder of Akre Capital Management. Charles Akre has curated a list of stocks poised for notable appreciation using his disciplined investment approach. He stepped away from PM role in 2020, however, even today Akre Capital's 9 of the top 10 stock holdings were initiated before 2020. Only one of the top 10 stocks was picked by John Neff who is in charge of portfolio management at Akre Capital. Today, we will be looking at 10 of the stocks picked by Charles Akre and John Neff, but we will also take a look at their upside potential. Before we dive into our picks, it is necessary to understand the market context that makes these stocks more attractive.

READ ALSO: 10 Dividend Paying Stocks Insiders Are Buying and 20 Takeover Rumors Hedge Funds Are Buying.

The performance of the market indices in the recent week suggests renewed investor confidence in equities. As per a report by the Wall Street Journal, this performance reflects optimism despite the economic data releases and corporate earnings reports showing adverse growth. Such market movements stress the significance of adopting a strategy when selecting a stock. The most often used and favored strategy involves letting yourself be guided by experienced investors like Akre.

The forefront of this resurgence is that many growth stocks, including small caps, have outperformed their value counterparts in 2023. It does not undermine the value equities but projects the current preferences of the market for companies with significant growth prospects. Akre Capital’s selections are in a perfect position to capitalize on this growing trend.

Investors must understand that such outperformance is not just a short-term phenomenon, as historical data indicate that growth stocks have been consistent deliverers of massive returns over a longer period. From 2009 onward, growth stocks have dominated many investors’ portfolios, except for a short period in 2022 when interest rate hikes affected their performance. According to CNBC, this long-term trend adds value to the investment strategy of focusing on growth.

Additionally, the need to identify high-quality growth stocks is further emphasized with the market gains concentrated on a select group of mega-cap stocks. For instance, the Magnificent Seven has a collective market value of $11.5 trillion. Akre Capital’s investment philosophy underpins this principle of making portfolio decisions by considering high-quality growth stocks.

In this context, the ten picks we have brought you here from Akre Capital’s portfolio are not just random selections but a list that is put together after going through the company’s fundamentals and long-term growth potential with a keen eye for details. Akre Capital’s approach remarkably aligns with the current market environment, where discerning investors tend to overcome market challenges by strengthening their portfolios using growth-oriented companies.

Before we take a look at our top picks, it is imperative for investors to appreciate the strategic considerations that helped us in putting together our list. Our choices are not about merely capitalizing on current market trends. We ensured that our list results from a deep understanding of the factors driving sustainable growth.

Our Methodology

We compiled our list of Akre Capital's 10 stock picks with huge upside potential by following a few criteria. All the stocks in our list are part of Akre Capital’s portfolio. Following this crucial criterion, we looked for stocks with a high percentage holding in the portfolio. This is to ensure that the article covers the top picks from renowned investors. Then, we looked at the upside potential of the stocks since they represent the future appreciation value of the investors’ capital. We have used this upside potential to rank our picks as well. All the data in the article was taken from financial databases and analyst reports, with all information updated as of April 26, 2025.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

O'Reilly Automotive, Inc. (NASDAQ:ORLY)

% holding in portfolio: 9.18%

Upside Potential: 11.36%

O'Reilly Automotive, Inc. (NASDAQ:ORLY), based in Missouri, operates one of the largest retail networks of auto parts stores across the U.S. and Mexico. Both professional installers and do-it-yourself customers form part of the customer base. The company reaches these customers with a wide range of aftermarket automotive parts, tools, and accessories. Against tough competitors like Advance Auto Parts, the dual-market approach, high inventory turnover, and proprietary distribution system make the company stand out. It strongly retains its market share by combining its client-centric service model with regional hub networks.

By occupying 9.18% of the portfolio, O'Reilly Automotive, Inc. (NASDAQ:ORLY) stands out as one of Charles Akre’s best stock picks. Our database starts in 2011 and ORLY has been among Charles Akre's stock picks during the entire period. The primary reason behind this is the consistency of ORLY's sales growth. When announcing its results for 2024, the company noted a 2.9% increase in comparable store sales. The year also marks the 32nd consecutive year of growth for the company. For 2025, it plans to open 210 new stores, contributing to O'Reilly Automotive, Inc. (NASDAQ:ORLY)’s net earnings per share guidance of $42.90 to $43.40.

With the market environment backing the stock, analysts have estimated a double-digit upside of 11.36% for O'Reilly Automotive, Inc. (NASDAQ:ORLY), making it a worthy choice for investors seeking stocks with Akre’s confidence in its capacity.

Overall ORLY ranks 9th on our list of Charles Akre's and John Neff's stock picks with huge upside potential. While we acknowledge the potential of ORLY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ORLY but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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