O'Reilly Automotive, Inc. (ORLY)

In the past six months, O'Reilly Automotive's stock has experienced several notable events, including the report of its Fourth Quarter and Full-Year 2024 results on February 5, 2025, showing strong comparable store sales growth. On March 13, 2025, the Board of Directors approved a 15-for-1 stock split, subject to shareholder approval. The company reported its First Quarter 2025 results on April 23, 2025, with revenue of $4.14 billion, a 4% year-on-year rise, though it missed revenue expectations by 0.9%. Net income in Q1 2025 saw a negative growth rate of 1.6%, marking the second consecutive quarter of negative net income growth. Despite this, the stock has rallied 25% over the past year, outperforming the S&P 500. Analysts have generally maintained a Buy rating on the stock, with price target adjustments following the stock split. The stock reached an all-time high of $97.22 on April 2, 2025. There have been recent sales by insiders, which some analysts view as a potential lack of confidence. The company also announced dates for its Second Quarter 2025 earnings release and conference call for July 2025.

The automotive aftermarket industry, in which O'Reilly Automotive operates, is influenced by seasonality. Demand is influenced by factors such as the increasing average age of vehicles on the road, which typically results in higher demand for maintenance and repair parts. Sales trends can be sensitive to seasonal factors, with improved sales in categories related to summer weather. July is noted as historically the best month for ORLY, often coinciding with earnings reports. The company's dual market strategy helps ensure relatively stable demand across economic cycles.

O'Reilly Automotive, Inc. is a leading specialty retailer and distributor of automotive aftermarket parts, tools, supplies, equipment, and accessories, operating under a dual market strategy, serving both do-it-yourself (DIY) customers and professional service providers. Its sector is Consumer Cyclical, and its industry is Auto Parts. The company offers an extensive product lineup of new and remanufactured automotive hard parts and maintenance items, along with accessories, auto body paint, automotive tools, and professional service provider equipment. O'Reilly stores also provide services like battery diagnostic testing, battery, wiper, and bulb replacement, a loaner tool program, custom hydraulic hoses, drum and rotor resurfacing, electrical and module testing, and recycling for used oil, oil filters, and batteries.

O'Reilly Automotive, Inc. operates thousands of retail outlets across all 50 U.S. states, Puerto Rico, Mexico, and Canada. As of December 31, 2024, the company operated 6,265 stores in the U.S. and Puerto Rico, 87 stores in Mexico, and 26 stores in Canada. The company plans to open 200 to 210 net new stores in 2025, focusing on increasing penetration in existing markets and expanding into new contiguous markets.

O'Reilly Automotive maintains a strong brand reputation, characterized by its dominant position in the auto parts retail industry, consistent financial performance, successful expansion strategy, robust supply chain, and high levels of customer loyalty driven by quality service and knowledgeable staff. The company emphasizes a culture centered on doing the right thing to uphold its reputation for reliability and product expertise. Events that could affect reputation, as noted in company filings, include failure to protect the company's brand and reputation, and potential business interruptions from weather events, public health crises, or other disruptions.

O'Reilly Automotive, Inc. has a mixed ownership structure, with a significant portion held by institutional investors, owning approximately 87% of the company as of December 2024 and July 2025. The general public holds about 12% of the stock, and insiders own under 1% of the company. Major institutional owners include Vanguard Group Inc., BlackRock, Inc., State Street Corp, Wellington Management Group Llp, Vanguard Total Stock Market Index Fund Investor Shares (VTSMX), Principal Financial Group Inc., Fmr Llc, Vanguard 500 Index Fund Investor Shares (VFINX), Geode Capital Management, Llc, Bank of New York Mellon Corp, and iShares.