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O’Reilly Automotive, Inc. (ORLY) Stock Analysis

By Nova Skye | AltStation.io | Updated February 07, 2026

Price

$92.30

Change

-0.60%

Market Cap

$77.91B

Avg Volume

5.6M

Company Overview

O’Reilly Automotive, Inc. is a leading retailer and distributor of automotive aftermarket parts, tools, and accessories in North America. They offer a broad range of products, including new and remanufactured hard parts, maintenance items, and accessories. Their customers are mostly do-it-yourself vehicle owners and professional service providers. Headquartered in Springfield, Missouri, O’Reilly operates locations across the United States, Puerto Rico, Mexico, and Canada.

O’Reilly is a dominant player in the auto parts retail sector, positioning itself as a market leader with a significant share compared to competitors like AutoZone and Advance Auto Parts. Their edge comes from a well-established supply chain, a broad network of stores, and a comprehensive product range that caters to various customer needs. However, they face challenges from online retailers and changing consumer preferences, which could threaten traditional in-store sales.

Currently, O’Reilly is in a growth phase, expanding its footprint and improving its e-commerce capabilities. Their strategic focus includes enhancing store productivity and streamlining inventory management. Recent milestones include opening new locations and bolstering their digital services, which align with their goal to better serve both retail and professional customers in a competitive landscape.

Key Financials

Market Cap

$77.91B

Revenue

$17.78B

EBITDA

$3.97B

Gross Margin

51.6%

Profit Margin

14.3%

Revenue Growth

7.8%

Total Cash

$193.79M

Total Debt

$8.49B

Free Cash Flow

$1.03B

52-Week Price Performance Analysis

Price Statistics

P/E Ratio

31.08

Forward P/E

25.75

Beta

0.62

52-Week High

$108.72

52-Week Low

$85.55

EPS

$2.97

50-Day Avg

$95.60

200-Day Avg

$96.72

Price/Book

-101.76

Technical Analysis

O’Reilly Automotive, Inc. (ORLY) has displayed a generally upward trend over the past 52 weeks, with the stock increasing approximately 7.9% from June through February. Key support is identified around the $85 level, where the price bounced back during several pullbacks. Resistance has been encountered near the $110 mark, creating a ceiling for the stock’s upward movements. Recently, the price has shown consolidation below $95, forming a potential ascending triangle, indicating bullish momentum could return. As of now, the current price at $92.30 is positioned near the middle of its 52-week trading range of approximately $85 to $110, suggesting that there may be room for upward movement if bullish momentum resumes. Overall, the stock’s recent price behavior suggests a cautious optimism in the market sentiment towards ORLY.

Recent News and Developments

Here’s a summary of the latest news and developments for O’Reilly Automotive, Inc

(ORLY) stock in the past week:

### 1

O’Reilly Automotive Reports Mixed Q4 2025 Results and Disappointing 2026 Guidance

Headline:

O’Reilly Automotive Misses Q4 EPS Estimates, Provides Conservative 2026 Outlook, Leading to Stock Dip.

Market Sentiment and Analyst Recommendations

Bull Case

O’Reilly is executing a proven playbook at scale. Q4 comparable store sales grew 5.6% while the company plans to open 225-235 new locations in 2026, which is aggressive growth on a $77.91B market cap. The 7.8% revenue growth rate is solid for a mature automotive parts retailer, and management is targeting 3-5% comp growth going forward. At 31.08 P/E, ORLY trades at a reasonable multiple for a company with this growth profile and the scale to defend market share against Amazon and other online competitors. Twenty-five analysts recommend a buy with a median target of $106.12, implying 15% upside from current levels. The $193.79M cash position combined with consistent free cash flow generation gives management flexibility to fund expansion and return capital. ORLY’s dual market (professional and DIY) provides revenue diversification that most pure-play competitors lack.

Bear Case

The 2026 guidance miss is a red flag. Management guided EPS to $3.10-$3.20 versus consensus of $3.32, a 3-5% shortfall that suggests margin pressure or slower-than-expected sales acceleration. The company is carrying $8.49B in debt while cash sits at only $193.79M, leaving limited financial cushion if economic conditions deteriorate or store productivity disappoints. Same-store sales growth of 5.6% is healthy but decelerating from prior periods, and opening 225-235 new stores will cannibalize existing locations and dilute per-store economics. The stock already climbed 7.9% over the past 52 weeks, so much of the bullish case appears priced in at $92.30. Automotive aftermarket demand is cyclical and tied to vehicle miles driven and repair spending; a recession would hit this business hard, and the stock offers no margin of safety at current valuations.

What to Watch

Monitor Q1 2026 comparable store sales when reported in April. Management guided 3-5% comp growth for the full year, so early quarters will signal whether that guidance is achievable or conservative. Track the company’s ability to maintain gross margins as it scales new store openings; if margins compress below 50%, it suggests competitive pricing pressure or supply chain headwinds. Watch for any revisions to the 2026 EPS guidance in coming earnings calls. A reaffirmation or raise would validate the bull thesis; another cut breaks the narrative. The stock needs to clear the $110 resistance level to confirm the ascending triangle pattern mentioned in the chart analysis. Monitor industry data on vehicle miles driven and average repair costs, which are the primary demand drivers for the aftermarket parts business. Finally, track management commentary on e-commerce penetration and whether online sales are cannibalizing store traffic or driving incremental demand.

Analyst Consensus

BUY

Based on 25 analyst opinions

Low Target

$64.00

Mean Target

$106.12

High Target

$120.00

Earnings and Financial Data

Sector

Consumer Cyclical

Industry

Auto Parts

Employees

93,072

Earnings & Dividends

Next Earnings

Apr 22, 2026

EPS (Trailing)

$2.97

Dividend Yield

None

Payout Ratio

Frequently Asked Questions

Is ORLY a good stock to buy?

Yes, ORLY is considered a strong buy with a current analyst recommendation. The target price is set at $106.12, representing potential upside from the current price of $92.30.

What is ORLY’s price target?

The price target for O’Reilly Automotive is $106.12. This target reflects a growth potential of about 15% based on the current trading price.

Does ORLY pay a dividend?

No, O’Reilly Automotive does not pay a dividend. The company reinvests its profits back into the business, which is common in growth-focused stocks.

What is ORLY’s current P/E ratio?

O’Reilly’s current P/E ratio is 31.08, indicating that the stock is priced at a premium compared to its earnings. This suggests investor confidence in the company’s growth prospects.

What is the 52-week range for ORLY?

The 52-week range for O’Reilly Automotive is $85.55 to $108.72. This range shows the stock’s volatility, and its current price is closer to the lower end, potentially signaling a good entry point.

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Disclaimer: This report is for informational purposes only and does not constitute financial advice. The analysis and opinions expressed are those of AltStation.io and should not be relied upon as the sole basis for investment decisions. Always conduct your own research and consult with a qualified financial advisor before making investment decisions. Past performance does not guarantee future results. Updated February 07, 2026.