O'Reilly Automotive, Inc. (ORLY)

In the past six months, O'Reilly Automotive's stock has been impacted by several key events. Despite exceeding expectations with Q4 2024 results, the stock declined due to cautious 2025 guidance. The Board approved a 15-for-1 stock split to make the share price more manageable. Q1 2025 results showed a solid start with a comparable store sales increase, but revenue missed Wall Street's expectations. The changing tariff landscape brings uncertainty, but O'Reilly remains confident in its business. The company has continued its share repurchase program, showcasing confidence in its long-term prospects.

Demand for O'Reilly Automotive's products is influenced by seasonal factors. Winter sees increased sales of winter-specific items, while spring and summer experience higher demand for parts supporting road trips and general maintenance. Storm and hurricane seasons can lead to surges in demand for emergency repairs, while critical parts like brake pads and oil filters are consistently ordered year-round. The automotive industry generally experiences peak demand in spring and autumn, with sales lowest in January, February, and early March. The increasing average age of vehicles contributes to steady demand for maintenance and repair parts.

O'Reilly Automotive, Inc. is a specialty retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories, operating within the Consumer Discretionary sector. It serves both do-it-yourself customers and professional service providers. Its product line includes new and remanufactured automotive hard parts and maintenance items, accessories, auto body paint, automotive tools, and professional service provider service equipment. The company provides enhanced services and programs, including recycling, replacement services, diagnostic testing, and a loaner tool program. Products are sold under various brands, including BesTest, BrakeBest, and O'Reilly Auto Parts.

O'Reilly Automotive operates a vast network of stores and distribution centers, headquartered in Springfield, Missouri. As of March 31, 2025, it had 6,416 stores across 48 U.S. states, Puerto Rico, Mexico, and Canada. Expansion has been driven by new store openings and strategic acquisitions, including Hi/LO Auto Supply, Midwest Automotive Distributors, and CSK Auto Corporation. O'Reilly entered the Mexican market in late 2019 and the Canadian market in December 2023.

O'Reilly Automotive has a strong brand reputation synonymous with quality and reliability, built on knowledgeable staff, ample product availability, and commitment to customer service. Its robust distribution network and efficient supply chain management further enhance its positive standing. No specific negative events significantly impacted its brand reputation in the past year, and consistent financial performance and strategic expansions have reinforced its positive image.

O'Reilly Automotive has strong institutional backing, with institutions owning approximately 87% of the company's shares. As of June 13, 2025, 2,504 institutional owners and shareholders held a total of 58,732,320 shares, with Vanguard Group Inc and BlackRock, Inc. being the largest institutional shareholders. Individual insider ownership is less than 1%, with David E. O'Reilly being the largest individual shareholder.