The Motley Fool·2025-07-26 07:45Group 1: Apple Inc. - Apple has a strong brand moat based on design expertise in both hardware and software, leading the market in smartphone revenue with a 5% revenue increase to $95 billion and a 5% rise in GAAP net income to $24.8 billion in the March quarter [4][8] - The company has struggled to effectively integrate artificial intelligence (AI) into its business, with underwhelming consumer response to new AI features and delays in upgrades to its digital assistant Siri [5][6] - Analysts expect Apple's earnings to grow at 11% annually over the next three years, but the current valuation of 33 times earnings may be overestimated, as earnings compounded at less than 2% annually over the last three years [8][9] Group 2: O'Reilly Automotive - O'Reilly Automotive is a leading specialty retailer of aftermarket automotive parts, operating over 6,400 stores across North America, serving both DIY and professional customers [10] - The company reported a 6% revenue increase to $4.5 billion in Q2, driven by 67 new store openings and 4.1% same-store sales growth, with GAAP earnings rising 11% to $0.78 per diluted share [12] - Wall Street anticipates O'Reilly's earnings to grow at 10% annually over the next three to five years, making the current valuation of 36 times earnings appear relatively expensive, yet it is suggested that investors consider a small position in the stock [13]