Stock of the Day

May 9, 2023

O'Reilly Automotive (ORLY)

$1,303.41
-$9.03 (-0.7%)
Market Cap: $75.77B

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.:

  • O'Reilly Automotive, Inc. has received a consensus rating of "Buy" from analysts, indicating strong confidence in the company's future performance.
  • The stock price is currently around $1,325.00, reflecting a robust market position and potential for growth.
  • Recent upgrades from investment firms, including a price target increase to $1,525.00, suggest that analysts expect significant appreciation in the stock's value.
  • With 15 analysts giving a "buy" rating and only two assigning a "strong buy," the overall sentiment is overwhelmingly positive, which can attract more investors.
  • O'Reilly Automotive, Inc. operates in the automotive aftermarket sector, which tends to be resilient during economic fluctuations, providing a stable investment opportunity.

O'Reilly Automotive Bear Case

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

  • Insider selling has been notable, with significant shares sold recently, which may indicate a lack of confidence from those closest to the company.
  • Despite the positive ratings, the stock's high price may deter new investors, as it could be perceived as overvalued compared to its earnings potential.
  • Only 1.55% of the stock is owned by corporate insiders, which may suggest a lack of alignment between management and shareholder interests.
  • The automotive aftermarket industry can be highly competitive, and any downturn in consumer spending could adversely affect O'Reilly Automotive, Inc.'s sales.
  • Market volatility can impact stock performance, and external economic factors may pose risks to the company's growth trajectory.

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