
O'Reilly Automotive (ORLY) Stock Forecast & Price Target
O'Reilly Automotive (ORLY) Analyst Ratings
Bulls say
O'Reilly Automotive demonstrates a strong foundation for growth with annual sales exceeding $16 billion and a well-established hub-and-spoke distribution network that enhances part availability. Management's capital expenditure plans for 2025, reflecting an increase to $1.2-$1.3 billion, are aimed at expansion through new stores and distribution centers, notably the upcoming facility in Fredericksburg, VA. The company's competitive advantages—such as an industry-leading electronic catalog, rapid delivery times, and a commitment to customer service—position it favorably in the aftermarket automotive parts sector, likely leading to sustained earnings per share growth and market share capture in the coming years.
Bears say
O'Reilly Automotive is facing several financial challenges that contribute to a negative outlook, including an expected decline in operating margin from 19.5% in 2024 to a range of 19.2%-19.7% in 2025, primarily due to wage inflation and ongoing investments in technology and hub store initiatives. The company's recent earnings report indicated a miss in EPS, exacerbated by a significant auto claims liability headwind, which highlights the pressures on profitability amid economic uncertainty and competitive threats, particularly from e-commerce retailers. Additionally, there are concerns regarding the company's ability to manage costs, achieve growth targets, and maintain market share, which could precipitate significant downside risks to earnings in a deteriorating economic environment.
This aggregate rating is based on analysts' research of O'Reilly Automotive and is not a guaranteed prediction by Public.com or investment advice.
O'Reilly Automotive (ORLY) Analyst Forecast & Price Prediction
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