O’Reilly Automotive Stock Testing Price Floor – Buy Now?
O’Reilly Automotive (ORLY) stock should be on your watchlist. Here is why – it is currently trading in the support zone ($88.21 – $97.49), levels from which it has bounced meaningfully before. In the last 10 years, O’Reilly Automotive stock received buying interest at this level 3 times and subsequently went on to generate 11.4% in average peak returns.
| Peak Return | Days to Peak Return | |
|---|---|---|
| 2/5/2025 | 6.9% | 57 |
| 5/14/2025 | 5.1% | 5 |
| 6/18/2025 | 22.1% | 85 |
Yet, a support zone alone isn’t enough; rebounds are more likely when fundamentals, sentiment, and market conditions line up. How does that look for ORLY?
Rebound likely amid strong fundamentals, valuation.
O’Reilly Automotive’s Q3 2025 earnings surpassed estimates with 7.8% revenue growth and 5.6% comparable store sales, fueled by robust professional demand. Analyst consensus maintains a “Strong Buy” rating, with average price targets indicating a 17-20% upside potential from current levels. An aging vehicle fleet provides a sustained industry tailwind, mitigating some consumer price sensitivity and EV/ADAS complexities. Share repurchases further enhance shareholder value. The stock’s current price near support, coupled with strong operational metrics, points to probable appreciation.
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How Do ORLY Financials Look Right Now?
- Revenue Growth: 6.2% LTM and 7.5% last 3-year average.
- Cash Generation: Nearly 8.9% free cash flow margin and 19.3% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in the last 3 years for ORLY was 5.2%.
- Valuation: ORLY stock trades at a PE multiple of 36.8
| ORLY | S&P Median | |
|---|---|---|
| Sector | Consumer Discretionary | – |
| Industry | Automotive Retail | – |
| PE Ratio | 36.8 | 23.5 |
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| LTM* Revenue Growth | 6.2% | 6.0% |
| 3Y Average Annual Revenue Growth | 7.5% | 5.4% |
| Min Annual Revenue Growth Last 3Y | 5.2% | 0.1% |
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| LTM* Operating Margin | 19.3% | 18.8% |
| 3Y Average Operating Margin | 19.7% | 18.3% |
| LTM* Free Cash Flow Margin | 8.9% | 13.4% |
*LTM: Last Twelve Months | For more details on ORLY fundamentals, read Buy or Sell ORLY Stock.
And What If The Support Breaks?
ORLY is no stranger to major selloffs. It fell about 65% in the Dot-Com crash and dropped 45% during the Global Financial Crisis. The 2018 correction and Covid pandemic both knocked it down close to 40%. Even the recent inflation shock caused a 23% dip. The stock may have strong fundamentals, but market turmoil still hits it hard. No matter how solid the story, big downturns happen.
But the risk is not limited to major market crashes. Stocks fall even when markets are in good shape – think events like earnings, business updates, outlook changes. Read ORLY Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
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