Wall Street analysts forecast that O'Reilly Automotive (ORLY) will report quarterly earnings of $0.72 per share in its upcoming release, pointing to a year-over-year increase of 9.1%. It is anticipated that revenues will amount to $4.4 billion, exhibiting an increase of 7.3% compared to the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during thi ...

Group 1 - The macroeconomic environment in the previous year was characterized by significant changes in trade policies and a strong focus on artificial intelligence investments [1] - O'Reilly Automotive has demonstrated a strong track record, with positive share price returns in all but one year from 2016 to 2025, including a 15% increase last year [3][4] - The company has achieved 32 consecutive years of same-store sales (SSS) growth, indicating robust demand for its services [4] Group 2 - O'Reilly's earnings per share (EPS) is projected to grow by 11.4% in 2026, following an annualized growth rate of 17.9% from 2019 to 2024 [5] - The current price-to-earnings (P/E) ratio for O'Reilly is 32.5, which is 25% higher than its trailing five-year average, indicating a valuation that is difficult to predict [6] - O'Reilly is recognized as a leader in the aftermarket auto parts industry, with ongoing expansion through new store openings and a strong focus on share repurchases [7]

Core Insights - O'Reilly Automotive, Inc. (ORLY) is recognized as a strong long-term compounder and is currently undergoing significant expansion, which lays the groundwork for international growth [1] Company Overview - O'Reilly Automotive has demonstrated solid performance over the years, indicating its potential for continued growth and profitability [1] Expansion Plans - The company is in the midst of a major expansion initiative, which is expected to enhance its market presence and facilitate international operations [1]

Core Viewpoint - O'Reilly Automotive, Inc. (ORLY) is recognized as a strong long-term compounder and is currently undergoing significant expansion, laying the groundwork for international growth [1] Group 1: Company Overview - O'Reilly Automotive has demonstrated solid performance over the long term, indicating its capability as a reliable investment [1] - The company is in the midst of a substantial expansion phase, which is expected to enhance its market presence internationally [1] Group 2: Analyst Background - The analyst has over a decade of experience researching various industries, including commodities and technology, which informs their insights on investment opportunities [1] - The analyst has transitioned from writing a blog to creating a value investing-focused YouTube channel, where extensive research on numerous companies has been conducted [1]

Core Viewpoint - The Zacks Automotive - Retail and Wholesale - Parts industry is experiencing a positive outlook driven by trends such as an aging vehicle fleet, increasing vehicle technology complexity, and advancements in digitization that enhance customer experience [1][4][6]. Industry Overview - The industry encompasses retailing, distribution, and installation of vehicle parts, with options for consumers to either repair vehicles themselves (DIY) or seek professional assistance (DIFM) [3]. - The competitive landscape is evolving due to changing customer expectations and technological innovations [3]. Factors at Play - **Aging Vehicles Fuel Auto Parts Demand**: The average age of vehicles on U.S. roads has reached 12.8 years, leading to increased demand for repairs and maintenance as consumers prefer to maintain existing vehicles rather than purchase new ones [4]. - **Technology Changing Repair Dynamics**: Advanced vehicle technologies are making repairs more complex, resulting in a shift from DIY repairs to reliance on professional mechanics and service centers [5]. - **Digitization Enhancing Customer Experience**: Companies are investing in digital transformation to improve customer engagement through online platforms and transparent pricing tools, which are becoming essential for competitiveness [6]. - **Softening Auto Sales to Support Aftermarket Reliance**: Economic pressures are expected to soften new vehicle sales, prompting consumers to repair existing vehicles, thereby supporting demand for auto parts and services [7]. Industry Ranking and Performance - The Zacks Auto Retail & Wholesale Parts industry holds a favorable Zacks Industry Rank of 62, placing it in the top 25% of approximately 245 Zacks industries, indicating strong near-term prospects [8][9]. - Despite this, the industry has underperformed compared to the Auto, Tires, and Truck sector and the S&P 500 over the past year, with a growth of 2% compared to 12% and 20% respectively [11]. Current Valuation - The industry is currently trading at an EV/EBITDA ratio of 25.82X, higher than the S&P 500's 18.9X and the sector's 26.87X, reflecting the debt-laden nature of automotive companies [14]. - Over the past five years, the industry has seen an EV/EBITDA range from 22.15X to 32.70X, with a median of 26.23X [15]. Stocks in Focus - **Driven Brands (DRVN)**: The largest automotive services company in North America, focusing on oil changes and maintenance, with a strong growth trajectory through franchising and a solid cash generation model. The company has a Zacks Rank of 2 (Buy) with a projected EPS growth of 16.7% for 2026 [18][19]. - **O'Reilly Automotive (ORLY)**: Known for its disciplined expansion and strong distribution network, O'Reilly has achieved record revenues for 32 consecutive years. The company has a Zacks Rank of 3 (Hold) with an expected EPS growth of 11% for 2026 [22][23]. - **AutoZone (AZO)**: With 36 years of record sales, AutoZone is expanding its hub and mega-hub stores to improve service speed and parts availability. The company has a Zacks Rank of 3 with projected EPS growth of 3% for 2026 [26][27].

Company Overview - O'Reilly Automotive, Inc. (ORLY) has a market cap of $76.3 billion and is a leading retailer and supplier of automotive aftermarket parts, tools, equipment, and accessories across the United States, Puerto Rico, Mexico, and Canada [1] - The company offers a wide range of products and services for both do-it-yourself and professional automotive repair, including maintenance items, accessories, professional tools, and enhanced programs such as battery testing, recycling, and custom hydraulic hose services [1] Financial Performance - O'Reilly Automotive is set to announce its fiscal Q4 2025 results soon, with analysts predicting an EPS of $0.72, representing a 9.1% increase from $0.66 in the same quarter last year [2] - For fiscal 2025, analysts forecast an EPS of $2.97, an 8.4% growth from $2.74 in fiscal 2024, and an anticipated increase of 11.1% year-over-year to $3.30 in fiscal 2026 [3] Recent Earnings and Stock Performance - The company reported stronger-than-expected Q3 2025 earnings of $0.85 per share and revenue of $4.71 billion, raising the lower end of its full-year revenue forecast to $17.6 billion - $17.8 billion, driven by strong demand for replacement auto parts [5] - Despite the positive earnings report, the stock fell 2.9% the following day [5] - Over the past 52 weeks, shares of O'Reilly Automotive have returned 12%, lagging behind the S&P 500 Index's 16.2% gain but outperforming the State Street Consumer Discretionary Select Sector SPDR ETF's 6.8% rise [4] Analyst Ratings - Analysts maintain a bullish consensus view on ORLY stock, with a "Strong Buy" rating overall; among 28 analysts, 21 recommend "Strong Buy," three give "Moderate Buy," and four indicate "Hold" [6] - The average analyst price target for O'Reilly Automotive is $112.08, suggesting a potential upside of nearly 24% from current levels [6]

Core Insights - The stock market has shown strong performance in 2025, with major indices reaching record highs, indicating Wall Street's potential for wealth creation [1][2] Group 1: Visa - Visa has a strong track record, with shares climbing in 13 of the last 15 years, and only two declines of 0.3% and 3.3% in 2021 and 2022 respectively [4] - The company's performance is closely tied to economic growth, benefiting from increased consumer and business spending [5] - Visa's focus on payment facilitation rather than lending allows it to avoid capital set-asides for loan losses, enabling quicker recovery during economic downturns [6] Group 2: The Trade Desk - The Trade Desk is positioned for recovery in 2026, with midterm elections expected to boost ad spending [7] - The company's Unified ID 2.0 technology is gaining traction, which could enhance its pricing power and sustain double-digit sales growth [8] - Shares are currently valued at 18 times forward earnings, presenting a bargain compared to previous expectations of 20% to 40% annual sales growth [9] Group 3: Meta Platforms - Meta Platforms remains fundamentally attractive despite high market valuations, with its apps attracting an average of 3.54 billion daily users [11][12] - The introduction of generative AI solutions is expected to enhance ad pricing power and improve click-through rates [13] Group 4: UnitedHealth Group - UnitedHealth Group faced challenges in 2025 but has historically risen in 22 of the last 26 years [16] - The company is exiting unprofitable markets and plans to increase healthcare premiums, which should enhance its pricing power [17] - The Optum subsidiary is expected to rebound, potentially making UnitedHealth a top performer in 2026 [18] Group 5: Sirius XM Holdings - Sirius XM operates as a legal monopoly in satellite radio, generating over 75% of its revenue from subscriptions, which provides predictable cash flow [20][21] - The company has a forward P/E ratio of less than 7, representing a 46% discount to its five-year average [22][23] Group 6: BioMarin Pharmaceutical - BioMarin focuses on ultrarare-disease therapies, with its drug Voxzogo expected to exceed $1 billion in sales this year [25][26] - The company is streamlining operations and is projected to achieve mid-to-high single-digit sales growth in 2026 [27] Group 7: NextEra Energy - NextEra Energy has generated positive returns for investors in 21 of the last 24 years, benefiting from stable electricity demand [29] - The company leads in renewable energy capacity, which has reduced generation costs and supported high-single-digit EPS growth [30][31] Group 8: Okta - Okta provides essential cybersecurity services, with demand expected to grow as cyber threats persist [33][34] - The company's subscription backlog increased to nearly $4.3 billion, reflecting strong growth potential [35] Group 9: York Water - York Water is positioned for significant revenue growth if its proposed rate increase is approved, potentially increasing annual revenue by 32% [37][38] - The company has a long history of dividend payments, enhancing its appeal as a stable investment [39] Group 10: O'Reilly Automotive - O'Reilly Automotive has advanced in 21 of the last 23 years, benefiting from the increasing age of vehicles on the road [41] - The company's share-repurchase program has positively impacted its EPS, making it attractive to value investors [43]

Core Viewpoint - O'Reilly Automotive, Inc. is set to release its fourth quarter and full-year 2025 financial results on February 4, 2026, with a subsequent conference call scheduled for February 5, 2026 [1][2]. Group 1: Financial Results Announcement - The financial results for the fourth quarter and full-year 2025 will be available after 3:30 p.m. Central Time on February 4, 2026, on the Company's website [2]. - A conference call to discuss these results will take place on February 5, 2026, at 10:00 a.m. Central Time, accessible via webcast [2][4]. - The dial-in number for the conference call is (888) 506-0062, with an identification number of 873967 [2][4]. Group 2: Company Overview - O'Reilly Automotive, Inc. was founded in 1957 and is a leading specialty retailer of automotive aftermarket parts, tools, supplies, equipment, and accessories in the U.S. [3]. - The Company serves both do-it-yourself customers and professional service providers [3]. - As of September 30, 2025, O'Reilly operated 6,538 stores across 48 U.S. states, Puerto Rico, Mexico, and Canada [3].

Core Viewpoint - O'Reilly Automotive is a leading player in the aftermarket auto parts industry, demonstrating strong historical performance despite not being at the forefront of technological innovation or rapid growth [1]. Financial Performance - In 2025, O'Reilly shares increased by 15.4%, slightly below the S&P 500's 16.4% return [2]. - The company has achieved a compound annual growth rate of net income of 11.9% from 2014 to 2024, indicating consistent profitability [8]. - Earnings per share are projected to grow by 8.8% in 2025 and 11.4% in 2026, reflecting ongoing financial strength [11]. Market Position and Strategy - O'Reilly is set to report its 33rd consecutive year of positive same-store sales growth in 2025, showcasing its resilience in various economic conditions [6]. - The company plans to open 200 to 210 net new locations by the end of 2025, with a target of 230 new locations in 2026, capitalizing on the fragmented nature of the industry [7]. - O'Reilly does not pay dividends but has been actively repurchasing shares, spending $1.6 billion on buybacks in the first nine months of 2025, and reducing the diluted outstanding share count by 44% over the last decade [9][10]. Valuation and Market Sentiment - Since late 2020, O'Reilly shares have appreciated by 201%, significantly outperforming the S&P 500, although this has been aided by a 56% increase in the price-to-earnings (P/E) ratio, which currently stands at 31.7 [12]. - While earnings growth is expected to continue, market sentiment can significantly influence investor returns, as valuation changes may overshadow profit growth [13].

Group 1: Core Insights - The article provides a market analysis focusing on AutoZone Inc and O'Reilly Automotive Inc, highlighting their performance and market positioning [1] Group 2: Company Performance - AutoZone Inc has shown strong revenue growth, with a reported increase of 10% year-over-year, reaching $12.5 billion in sales [1] - O'Reilly Automotive Inc also reported robust financial results, with a revenue increase of 8% year-over-year, totaling $11.2 billion [1] Group 3: Market Trends - The automotive aftermarket industry is experiencing a positive trend, driven by increased vehicle maintenance and repair needs, which is benefiting both AutoZone and O'Reilly [1] - The demand for auto parts is expected to continue growing, supported by an aging vehicle fleet in the U.S. [1]