O’Reilly Automotive Isn’t A Buy Yet

O’Reilly Automotive Inc opened their first store in 1957 in Missouri and today stands at over 4900 stores in 47 states.  Their distribution centers and hub stores has allowed them to maintain quick delivery times that their competitors can’t match.

O’Reilly Automotive Inc (NASDAQ:ORLY) is the biggest of the brick and mortar DIY automotive supply stores in the nation. So, it was a bit of shock in late April when it announced that Q1 was weaker than expected. Revenue and earnings were below expectations and even low for the company’s projections, which are usually conservative.

And ORLY stock had been on a run for a while, up nearly 40% for the past 12 months at that point. Now, the stock is off about 10%. Still up 30% in the past year, but it has certainly been dinged.

ORLY stock gets an overall A rating from my Portfolio Grader, which indicates that while its current fundamentals may not be great, there’s plenty of interest in the stock for the long term now that it’s sold off a bit.


According to, the U.S. automotive aftermarket was a $296 billion industry (2018) with a compound annual growth rate of 3.4% projected through 2021 and this growth should be sustained, especially when the Markets turn down because consumers will be a bit more cash strapped.

A great opportunity to consider going long would be if price pulls back to the monthly demand at $333.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

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