O’Reilly Automotive(US:ORLY) Yahoo Finance·2025-09-11 11:20Core Insights - O'Reilly Automotive has seen a significant increase in its stock price, trading up approximately 33% in 2025 and 10.2% since the second-quarter financial results were reported [1][3] - The company reported revenue growth of 6% and diluted earnings-per-share growth of 11% for the second quarter, with same-store sales (SSS) growth of 4.1% [3][4] - O'Reilly has achieved 32 consecutive years of positive SSS growth, indicating strong and durable demand [4][5] Financial Performance - The company’s revenue and earnings growth remain solid, with a focus on same-store sales as a key performance indicator [3][6] - O'Reilly's management has utilized free cash flow to repurchase shares, resulting in a 3% reduction in outstanding shares over the past year, which positively impacts earnings per share [5][6] Valuation Concerns - Despite the strong performance, the stock's valuation appears stretched, with a price-to-earnings ratio of 38.2, the highest in at least two decades [7][6] - Analysts suggest that while the stock may continue to rise, the current valuation may not be sustainable [7][8]