DailyIQ
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Sector:Consumer CyclicalAll sectors
Last updated1 minute ago

ORLY·O'Reilly Automotive, Inc.

$90.69
+1.58 (+1.77%)
Overnight$89.45-1.24 (-1.37%)
High
$91.49
Open
$89.13
Market Cap
74.46B
52W High
$108.72
Low
$89.11
P. Close
$90.69
P/E
28.10
52W Low
$82.59
Fwd P/E
24.40
DailyIQ Est.
-
Inst. Ownership
39.8%
Short Interest
3.00%
Technical Score (1D)
73
BUY
News Sentiment
73
BULLISH
O'Reilly’s valuation premium remains high, with only one of six valuation checks passed, signaling a potential risk if margins or cash generation falter. The premium is supported by projected revenue and cash flows, but any disappointment in operating performance could erode the valuation spread. Traders should monitor margin trends and cash flow releases to gauge the sustainability of the premium over the next 1–10 trading days. A recent competitor, Advance Auto Parts, reported weaker-than-expected Q2 sales, which triggered a 2.7% drop in O'Reilly shares due to sector‑wide demand concerns. The read‑through pressure reflects market sensitivity to auto‑parts retail signals rather than a fundamental shift in O'Reilly’s outlook. This sector sentiment could influence O'Reilly's short‑term performance, especially if the broader auto‑parts retail environment continues to show weakness. Traders should watch how the auto‑parts retail environment evolves and whether O'Reilly’s own sales data can offset the read‑through pressure. Additionally, monitoring comparable store sales trends in the sector will help assess whether the demand shock is temporary or persistent. If O'Reilly can maintain margins and cash flow while the sector rebounds, the valuation premium may hold; otherwise, a decline in the spread could materialize.
Earnings Summary
ORLY, a leading retailer and distributor of automotive aftermarket parts, tools, and accessories across the United States, Puerto Rico, Mexico, and Canada, serves both professional service providers and do‑it‑yourself customers with a broad range of new and remanufactured components, battery testing, recycling, and loaner tool programs. Operating in the consumer cyclical auto‑parts sector, the company has built a diversified product portfolio that includes engine parts, brake systems, maintenance items, accessories, and auto‑body supplies, supported by proprietary brands and value‑added services. In the most recent two quarters, Q1 2026 and Q2 2026, revenue rose from $4.56 billion to $4.89 billion, an 8.1% year‑over‑year increase that outpaced the prior two‑quarter average of $4.41 billion, while EPS moved from $0.72 to $0.86, a 19% rise that still fell short of the $0.88 estimate for Q2 2026; the company beat estimates in only two of the last seven quarters, with Q3 2025 and Q1 2026 being the sole outliers. Historically, ORLY has shown a steady YoY revenue trajectory, climbing from $4.10 billion in Q4 2024 to $4.89 billion in Q2 2026, a 19.6% increase, and EPS growth of roughly 35% over the same period, yet the firm has frequently missed analyst EPS estimates, indicating a pattern of revenue expansion coupled with margin pressure. Recent news highlights the company’s Q2 2026 earnings, where revenue of $4.89 billion beat expectations and the firm lifted its full‑year revenue guidance to $19.05 billion, while maintaining a 20.2% operating margin and announcing $1.5 billion in stock repurchases; analysts noted that margin expansion could be constrained by rising raw‑material costs and supply‑chain pressures, and the firm plans 225–235 new stores for 2026. Investors should watch for the company’s ability to sustain its 20.2% operating margin as sales volumes grow, monitor inventory levels and supply‑chain constraints, and assess the impact of electric‑vehicle parts demand on future revenue mix.

EPS

EstBeatMiss
$0.68$0.75$0.82$0.89$0.96Q2'25Q3'25Q4'25Q1'26Q2'26Q3'26
QtrEstActual+/−
Q3'26$0.93 - -
Q2'26$0.88$0.86-2.3%
Q1'26$0.71$0.72+1.7%
Q4'25$0.74$0.71-4.0%
Q3'25$0.83$0.85+2.4%
Q2'25$0.78$0.78-0.3%

Revenue

EstBeatMiss
$4.3B$4.5B$4.7B$4.9B$5.1BQ2'25Q3'25Q4'25Q1'26Q2'26Q3'26
QtrEstActual+/−
Q3'26$5.0B - -
Q2'26$5.0B$4.9B-1.3%
Q1'26$4.5B$4.6B+0.3%
Q4'25$4.5B$4.4B-1.4%
Q3'25 - $4.7B -
Q2'25 - $4.5B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

ORLY Stock Snapshot

ORLY is currently trading at $89.45, giving O'Reilly Automotive, Inc. a market cap of 74.46B and a P/E ratio of 28.1. Today's range spans $89.11–$91.49, with shares opening at $89.13 and moving down $1.24 (1.4%) from the prior close. DailyIQ's technical score sits at 73/100 (BUY) with a news sentiment reading of 73/100.

Over the past year ORLY has traded between $82.59 and $108.72 - the current price is +8.3% off the 52-week low and -17.7% from the high.

The bullish case for ORLY is built on complementary signals: 73/100 technical score, BUY designation, and bullish sentiment at 73/100. At $89.45 (in the lower half of its 52-week range within $82.59–$108.72), the stock is at a capitalization - 74.46B - where active managers can build meaningful positions without moving the market. (P/E: 28.1) That combination of signal quality and position-buildability makes this one of the more actionable large-cap setups in Consumer Cyclical.

Earnings revision cycles in large-cap Consumer Cyclical names tend to compound: when technicals confirm a BUY thesis (73/100) and news sentiment (73/100, bullish) supports the narrative, analyst upgrades follow price rather than lead it. At $89.45 (in the lower half of its 52-week range), ORLY's position within the $82.59–$108.72 annual range suggests there's room for multiple expansion before the stock encounters meaningful technical resistance.

Recent News Coverage

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