If You Invested $1000 in O'Reilly Automotive a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in O'Reilly Automotive (ORLY) ten years ago? It may not have been easy to hold on to ORLY for all that time, but if you did, how much would your investment be worth today?
O'Reilly Automotive's Business In-Depth
With that in mind, let's take a look at O'Reilly Automotive's main business drivers.
O'Reilly Automotive, Inc. is a leading specialty retailer of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States. Founded in 1957, O'Reilly initially operated from a single store in Springfield, MO. The company’s stores offer several services and programs to customers, which include battery diagnostic testing, check engine light code extraction and loaner tool program, among others. The company offers vehicle accessories, such as floor mats and seat cover as well as maintenance items like antifreeze, engine additives, filters, fluids, lighting and wiper blades.
Besides these, it provides new as well as remanufactured automotive hard parts (such as alternators, batteries, brake system components, belts, chassis parts, driveline parts, engine parts and fuel pumps), maintenance items, accessories, a complete range of auto body paint and related materials, automotive tools and professional service equipment.
The company sells products to both Do-it-Yourself (DIY) customers and Do-it-for-Me (DIFM) or professional installers. The company has a track record of over 40 years of following a dual-market strategy by serving both DIY and DIFM customers and is among the top three companies in both markets.
The automotive aftermarket items industry is a highly competitive industry. O'Reilly’s presence in the market, customer service, product availability, store location, brand recognition price and store location places the company in a competitive position among peers in the industry. The company’s omnichannel growth strategies are focused on offering customers an enhanced and seamless shopping experience through variety of digital and physical channels. The auto retailer has been expanding its physical presence through opening or acquiring stores while maintaining the existing ones. As of Dec 31, 2022, O’Reilly’s total store count was 5,971.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in O'Reilly Automotive ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in November 2013 would be worth $7,613.40, or a gain of 661.34%, as of November 2, 2023, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 140.56% and the price of gold went up 44.55% over the same time frame.
Going forward, analysts are expecting more upside for ORLY.
O’Reilly has been generating record revenues since 30 consecutive years on the back of growth in auto parts market. For 2023, O’Reilly projects total revenues in the $15.7-$15.8 billion band, up from $14.41 billion in 2022. It is poised to benefit from store openings and distribution centers in profitable regions. Mayasa Auto Parts buyout, O’Reilly’s first international expansion transaction, bolstered growth prospects. Robust buyback program is also boosting investors’ confidence. But rising SG&A costs and capital expenditures led by store expansion and omni-channel goals are hurting margins. Discouragingly, the firm foresees a decrease in the pace of comps growth during the fourth quarter of 2023. High debt levels also play a spoilsport. Thus, the stock warrants a cautious stance now.
The stock has jumped 5.40% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 11 higher, for fiscal 2023; the consensus estimate has moved up as well.
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O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report
