Stock of the Day

May 9, 2023

O'Reilly Automotive (ORLY)

$94.05
+$1.71 (+1.9%)
Market Cap: $80.46B

About O'Reilly Automotive

O'Reilly Automotive, Inc., together with its subsidiaries, operates as a retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States, Puerto Rico, and Mexico. The company provides new and remanufactured automotive hard parts and maintenance items, such as alternators, batteries, brake system components, belts, chassis parts, driveline parts, engine parts, fuel pumps, hoses, starters, temperature control, water pumps, antifreeze, appearance products, engine additives, filters, fluids, lighting products, and oil and wiper blades; and accessories, including floor mats, seat covers, and truck accessories. It also offers auto body paint and related materials, automotive tools, and professional service provider service equipment. In addition, the company provide enhanced services and programs comprising used oil, oil filter, and battery recycling; battery, wiper, and bulb replacement; battery diagnostic testing; electrical and module testing; check engine light code extraction; loaner tool program; drum and rotor resurfacing; custom hydraulic hoses; and professional paint shop mixing and related materials. Further, it offers do-it-yourself and professional service for domestic and imported automobiles, vans, and trucks. The company was founded in 1957 and is headquartered in Springfield, Missouri.

O'Reilly Automotive Bull Case

Here are some ways that investors could benefit from investing in O'Reilly Automotive, Inc.:

  • The current stock price is around $91.62, which reflects a stable trading environment and potential for growth.
  • O'Reilly Automotive, Inc. has shown a year-over-year revenue increase of 4.0%, indicating a positive trend in sales and market demand.
  • The company has a strong market capitalization of approximately $78.32 billion, suggesting robust financial health and stability.
  • Analysts have a consensus rating of "Buy" for O'Reilly Automotive, Inc., with a price target of around $94.38, indicating expected appreciation in stock value.
  • Insider ownership is relatively low at 1.01%, which can be seen as a positive sign that the company is open to external investment and growth opportunities.

O'Reilly Automotive Bear Case

Investors should be bearish about investing in O'Reilly Automotive, Inc. for these reasons:

  • The company reported earnings per share of $0.62, missing the consensus estimate, which may raise concerns about its profitability.
  • O'Reilly Automotive, Inc. has a negative return on equity of 167.25%, indicating that the company is not generating profit from its equity, which could deter potential investors.
  • Insiders have sold a significant number of shares recently, totaling 33,285 shares valued at over $3 million, which might signal a lack of confidence in the company's future performance.
  • The stock has a price-to-earnings ratio of 33.68, which is relatively high, suggesting that the stock may be overvalued compared to its earnings.
  • The trading volume has been below average, which could indicate reduced investor interest and potential volatility in the stock price.

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