We recently published a list of Top 10 Auto Parts Stocks That Could Surge On Trump’s Auto Tariff Relaxation. In this article, we are going to take a look at where O’Reilly Automotive, Inc. (NASDAQ:ORLY) stands against other top auto parts stocks that could surge On Trump’s auto tariff relaxation.

The corporate earnings season is about to kick off, but investors have something else on their minds: Donald Trump’s tariffs. Since the beginning of his term, Trump has wreaked havoc on the markets with repeated tariffs, resulting in the S&P index being down nearly 8% for the year.

We have observed that some of the most aggressive tariff policies are soon revoked or relaxed, resulting in a rally that brings back the stock prices to reasonable levels. We saw this recently when Donald Trump hinted that Big Tech companies may not bear the brunt of the tariffs as badly as previously thought. As a result, investors poured their money into these companies, thinking they may be critical for the US infrastructure.

A similar development is forming in the auto sector, with Trump likely to offer some relaxation when it comes to importing auto parts or manufacturing vehicles outside the US. Since auto parts companies are critical to the supply chain of this industry, we decided to take a look at the auto parts stocks that could surge following any news of relaxation in tariffs.

To come up with our list of Top 10 Auto Parts Stocks that could surge following Trump’s auto tariff reprieve, we looked at companies in the auto parts industry with a minimum market cap of $300 million that were outperforming their peers.

A mechanic working on a car in an auto shop, skillfully replacing the aftermarket parts.

O’Reilly Automotive, Inc. (NASDAQ:ORLY)

O’Reilly Automotive, Inc. is a supplier and retailer of automotive aftermarket parts, equipment, tools, accessories, and supplies. It offers remanufactured and new automotive hard parts and maintenance items. The company also provides automotive tools, professional service provider service equipment, and auto body paint and related materials.  The stock continues to gain upward momentum, surging over 19% this year.

As per the company’s recently reported Q4 2024 earnings, revenue improved by $264 million. This was due to the 4.4% increase in the comp store sales along with the $66M increase in non-comp sales from newer stores. For FY 2024, the recorded EPS growth was 5.7%, despite the challenge from the self-insurance liability charge.  Gross margin came in line with the estimates.

Despite macroeconomic uncertainties, ORLY anticipates comparable store sales growth of 2% to 4%. The firm also expects EPS to grow by 5.4%.

Overall, ORLY ranks 1st on our list of top auto parts stocks that could surge On Trump’s auto tariff relaxation. While we acknowledge the potential of ORLY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ORLY but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.