For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.

What if you'd invested in O'Reilly Automotive (ORLY) ten years ago? It may not have been easy to hold on to ORLY for all that time, but if you did, how much would your investment be worth today?

O'Reilly Automotive's Business In-Depth

With that in mind, let's take a look at O'Reilly Automotive's main business drivers.

O'Reilly Automotive, Inc. is a leading specialty retailer of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States. Founded in 1957, O'Reilly initially operated from a single store in Springfield, MO. The company’s stores offer several services and programs to customers, which include battery diagnostic testing, check engine light code extraction and loaner tool program, among others. The company offers vehicle accessories, such as floor mats and seat cover as well as maintenance items like antifreeze, engine additives, filters, fluids, lighting and wiper blades.

Besides these, it provides new as well as remanufactured automotive hard parts (such as alternators, batteries, brake system components, belts, chassis parts, driveline parts, engine parts and fuel pumps), maintenance items, accessories, a complete range of auto body paint and related materials, automotive tools and professional service equipment.

The company sells products to both Do-it-Yourself (DIY) customers and Do-it-for-Me (DIFM) or professional installers. The company follows a dual-market strategy by serving both DIY and DIFM customers and is among the leading companies in both markets. 

The automotive aftermarket items industry is a highly competitive industry. O'Reilly’s presence in the market, customer service, product availability, store location, brand recognition price and store location position the company in a competitive position among peers in the industry. The company’s omnichannel growth strategies are focused on offering customers an enhanced and seamless shopping experience through variety of digital and physical channels.

The auto retailer has been expanding its physical presence through opening or acquiring stores while maintaining the existing ones. As of Mar 31, 2024, O’Reilly’s total store count was 6,217 across 48 U.S. states, Puerto Rico, Canada and Mexico.

Bottom Line

Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For O'Reilly Automotive, if you bought shares a decade ago, you're likely feeling really good about your investment today.

A $1000 investment made in January 2015 would be worth $6,715.87, or a 571.59% gain, as of January 28, 2025, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

The S&P 500 rose 196.24% and the price of gold increased 104.98% over the same time frame in comparison.

Analysts are anticipating more upside for ORLY.

O’Reilly has been generating record revenues for 31 consecutive years and the trend is likely to continue on the back of growth in the auto parts market, vehicle longevity, store expansion, a strong distribution network and a customer-centric business model. The company plans to increase its inventory level for the rest of the year to keep products available in all the markets it serves. However, the company has slashed guidance for comps growth and operating margins due to the unpredictability associated with the fourth quarter. It also expects challenges in its DIY business as sales with higher margins have slowed more than expected. The company’s high capex needs to develop advanced superior offerings might limit its cash flows. Thus, the stock warrants a cautious stance.

Over the past four weeks, shares have rallied 8.70%, and there have been 2 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.

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O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report

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