
O'Reilly Automotive (ORLY) Stock Forecast & Price Target
O'Reilly Automotive (ORLY) Analyst Ratings
Bulls say
O'Reilly Automotive's robust financial outlook is bolstered by its strategic capital expenditure plans of $1.2 to $1.3 billion aimed at enhancing distribution capacity and store footprint, indicative of a proactive approach to market share capture. The anticipated opening of a significant 534,200 square foot distribution facility in Fredericksburg, VA, expected to increase regional capacity by approximately 350 stores, further underscores the company's commitment to enhancing operational efficiency and product availability. Coupled with a resilient demand for aftermarket components and structural advantages such as an industry-leading electronic catalog and in-store servicing culture, O'Reilly is well-positioned for sustained earnings per share growth and market share expansion in the coming years.
Bears say
O'Reilly Automotive's stock outlook is negatively impacted by anticipated margin pressures, with operating margins expected to decline to 19.2%-19.7% in 2025 due to wage inflation and necessary investments in hub stores and technology, despite a slight benefit from self-insurance charges. Furthermore, increased competition from e-commerce retailers and external economic factors, such as potential downturns or adverse weather conditions, pose significant risks to the company's market share and growth projections. Additionally, the company's recent quarterly results indicated disappointing margins driven by transient costs associated with a distribution center relocation, signaling potential challenges in maintaining profitability amidst a softer consumer discretionary 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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