Stock of the Day

May 9, 2023

O'Reilly Automotive (ORLY)

$88.80
+$0.30 (+0.3%)
Market Cap: $71.59B

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 $110, reflecting a positive outlook from analysts who have recently increased their price targets.
  • O'Reilly Automotive, Inc. has shown consistent revenue growth, with a reported increase of 8.1% year-over-year, indicating strong demand for its products.
  • The company has received multiple "outperform" ratings from analysts, suggesting confidence in its future performance and market position.
  • With a market capitalization of approximately $72.44 billion, O'Reilly Automotive, Inc. is a significant player in the automotive aftermarket, providing stability and potential for growth.
  • The firm has a consensus rating of "Moderate Buy," which indicates that a majority of analysts believe the stock is a good investment opportunity.

O'Reilly Automotive Bear Case

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

  • The company has a high price-to-earnings (P/E) ratio of 28.52, which may suggest that the stock is overvalued compared to its earnings potential.
  • O'Reilly Automotive, Inc. has a negative return on equity of 232.45%, indicating that the company is not generating profit effectively from its equity base.
  • Despite recent growth, the stock has experienced fluctuations, which could indicate volatility and risk for investors.
  • The company operates in a competitive market, which may pressure margins and affect profitability in the long term.
  • Analysts have set a consensus price target of $107.24, which is slightly below the current stock price, suggesting limited upside potential in the near term.

Recent News