ORLY Stock Analysis — O'Reilly Automotive, Inc.
Sector: Retail
AI Verdict
At 25.1x forward earnings for 31.6% expected growth, you're getting tech-level growth at a premium, but the valuation only holds up if O'Reilly's scale advantage keeps driving outperformance.
Competitive Moat
O'Reilly Auto Parts operates a vast network of auto parts stores with deep inventory and strong relationships with repair shops, making it hard for new entrants to match their distribution speed and breadth. Their scale and logistics infrastructure create a durable moat in a fragmented aftermarket parts industry.
Summary
ORLY's 31.6% expected EPS growth and a 25.1x forward P/E put it in focus as a retail stock with tech-like growth expectations.
Where It Stands
Despite a -10.32% 1-year return and an RSI of 67.1 signaling elevated pullback risk, the stock trades at 25.1x forward earnings—above the 20x sector median for consumer staples/retail but with much higher forecast growth.
Key Metrics
- RSI: 67.1 — Near Overbought
- Trailing P/E: 33.1x
- Forward P/E: 25.1x
- PEG Ratio: 1.05
- Earnings Growth: +0.3%
- Revenue Growth: +0.1%
- Market Cap: $74.5B
- 1-Year Return: -10.32%
- 52-Week High: $108.72
- 52-Week Low: $82.59
Analyst Consensus
29 Buy · 7 Hold · 0 Sell (36 analysts)
Bull Case
Analysts expect 31.6% EPS growth next year, so the 25.1x forward P/E is cheap for the growth on offer if O'Reilly's distribution moat holds.
Bear Case
With a trailing P/E of 33.1x and an RSI of 67.1, a pullback to the sector median 20x would mean a 40%+ downside if growth expectations slip.
Catalyst to Watch
Watch for next quarter's earnings and guidance—if EPS momentum stalls, the premium P/E could unwind quickly.