The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 36 | 27.5x | 20.8x | Bottom tier | |
Growth | 60 | 7.9% | 6.1% | Around median | |
Quality | 49 | 61.2% | 6.6% | Around median | |
Safety | 63 | 1.4x | 0.7x | Around median | |
Capital Return | 49 | — | 2.02% | Around median | |
Momentum | 42 | 1.7% | 4.1% | Around median | |
Sentiment | 86 | 17 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
O'Reilly Automotive is a leading company in the automotive aftermarket retail sector, providing parts, tools, equipment, and accessories to its customers. The company relies on serving two primary segments for its revenues: professional automotive repair service providers and individual customers who prefer to repair their vehicles themselves. The company operates an extensive network of stores across the United States, Mexico, and Canada, and benefits from a strong distribution network and a growing portfolio of private label brands that now account for more than half of its total revenues, enhancing customer loyalty and improving profit margins.
In the first quarter of fiscal year 2026, the company achieved strong financial results, with total revenues reaching $4.6 billion and gross profit of $2.3 billion. The company reported a net income of $604.2 million, with earnings per share of $0.72, representing a 16 percent increase in diluted earnings per share compared to the previous year. Comparable store sales also rose by an impressive 8.1 percent, driven by double-digit growth in the professional segment for the third consecutive quarter, while the gross margin improved by 19 basis points to reach 51.5 percent.
O'Reilly Automotive stock is currently trading at levels that reflect mixed valuations between strong operational performance and recent acquisition risks, with a clear consensus among analysts for a buy recommendation. The average price target from analysts is $110.64, with a high of $115 and a low of $105. Based on the stock's recent price range and analyst expectations, the stock is currently trading below the average price target, indicating a potential upside opportunity for investors who trust management's ability to successfully execute its expansion plans.
Figures in the text are as of 2026-07-12; the live price is shown at the top of the page.
The professional business segment was the primary driver of growth, achieving double-digit comparable store sales for the third consecutive quarter. At the same time, the individual customer segment showed notable strength, recording mid-single-digit growth. Thanks to this dual performance, total comparable store sales increased by 8.1 percent, significantly exceeding the company's initial expectations.
During the first quarter of 2026, the company benefited significantly from a combination of mild and dry winter weather and an increase in the average and total individual tax refunds. These factors encouraged consumers to perform deferred maintenance on their vehicles starting in February and continuing through March. Management noted that this combination acted as a strong tailwind for transaction volumes, although they are cautious about assuming this momentum will continue with the same strength in the second half of the year.
In early July 2026, news emerged that O'Reilly made a massive $10 billion offer to acquire the NAPA auto parts division from Genuine Parts Company. Although this huge deal could significantly expand the company's market share, it raised investor concerns regarding costs and operational risks. As a result, the stock faced selling pressure and declined despite the company announcing strong quarterly earnings that exceeded expectations.
Automated analysis for informational purposes only — not investment advice.
O'Reilly has successfully navigated acquisition cost pressures by leveraging its massive scale and its portfolio of private label brands, which now account for over 50 percent of revenues. Although geopolitical conflicts pose a risk to motor oil prices and ocean freight costs, the company did not record a material negative impact in the first quarter of 2026. Management relies on diversifying the supplier base and adjusting orders across multiple sources to maintain industry-leading inventory availability without harming gross profit margins.