O’Reilly Automotive, Inc. (ORLY) is a leading automotive replacement parts retailer that supplies parts, tools, equipment, and accessories to both professional service providers and do-it-yourself customers. Headquartered in Springfield, Missouri, the company operates stores across multiple regions, offering a wide selection of quality products for vehicle maintenance and repair needs to drivers and professionals in every community it serves. It has a market capitalization of $76.03 billion.
The company issued conservative guidance for 2026, citing rising healthcare, self-insurance, and legal costs that could pressure margins (even as it continues its aggressive store expansion), resulting in ORLY’s subdued stock performance.
Over the past 52 weeks, O’Reilly’s stock has only marginally gained. It is also up slightly year-to-date (YTD). The stock reached a 52-week low of $86.77 on Mar. 20, but is up 5.7% from that level. The broader S&P 500 index ($SPX) has increased 27.9% over the past 52 weeks and is up 9.2% YTD, indicating that the stock has underperformed the broader market over these periods.
Comparing the stock’s performance with that of its sector, we see that the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) has gained 12.1% over the past 52 weeks but is down marginally YTD. Therefore, O’Reilly has underperformed its sector over the past year.
O’Reilly’s first-quarter results were better than what analysts had expected. The company’s sales increased 10.2% year-over-year (YOY) to $4.56 billion, while comparable store sales grew 8.1%. Its EPS grew 16.1% annually to $0.72. For the current year, O’Reilly plans to open 225-235 net new stores and achieve 3%-5% comparable store sales growth.
For the current quarter, Wall Street analysts expect O’Reilly’s EPS to grow 9% YOY to $0.85 on a diluted basis. Moreover, EPS is expected to increase 9.1% annually to $3.24 in fiscal 2026, followed by an 11.4% improvement to $3.61 in fiscal 2027. The company has a solid history of surpassing consensus estimates, topping them in three of the four trailing quarters.
Among the 28 Wall Street analysts covering O’Reilly’s stock, the consensus is a “Strong Buy.” That’s based on 20 “Strong Buy” ratings, three “Moderate Buys,” and five “Holds.” The ratings configuration has remained the same over the past three months.
Following the first-quarter results, analysts at Mizuho maintained an “Outperform” rating on the stock and raised the price target from $105 to $110. Roth Capital analysts maintained a “Buy” rating and raised the price target from $108 to $109, citing the company’s strong results.
O’Reilly’s mean price target of $111.32 indicates a 21.3% upside over current market prices. The Street-high price target of $120 implies a 30.8% upside.
On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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