1 Unstoppable Growth Stock That's On Track to Double by 2030

Group 1: Company Performance - O'Reilly Automotive's share price has increased approximately 240% over the past five years, significantly outperforming the S&P 500's return of 106% [1] - The company has been expanding rapidly by opening new stores and executing stock buybacks, with a recent 15-for-1 stock split in June [2] - In the most recent quarter, diluted earnings per share rose by 11% year over year, and management anticipates a 3% net increase in store count for the year [10] Group 2: Market Conditions - Weak U.S. auto sales and recent trade policy changes are expected to negatively impact new car sales in the short term [3][4] - New tariffs on auto imports and components are likely to increase the price of new cars, which may further reduce demand for both new and used vehicles [4] - A decline in vehicle purchases leads consumers to retain their existing cars longer, increasing the likelihood of needing replacement parts, which benefits O'Reilly [5][8] Group 3: Valuation Concerns - O'Reilly's trailing price-to-sales (P/S) ratio is 5.2, significantly higher than competitors Autozone (3.6) and Advance Auto Parts (0.4) [9] - The company's price-to-earnings (P/E) ratio has reached a multidecade high of 36.4, also above its rivals [9] - Despite high valuations, the company's strong growth prospects justify its premium pricing [9] Group 4: Future Growth Potential - For O'Reilly's share price to double by 2030, a compound annual growth rate (CAGR) of about 15% per year is required, which appears achievable given current market conditions [10] - Additional sales growth may stem from the ongoing weakness in auto sales and a softening labor market, supporting the potential for a 15% CAGR [10]