A company that's rallied almost 62,000% since its debut makes for a no-brainer buy in August, while another that had gained more than 60,000% on a year-to-basis is a disaster waiting to happen.
The best-performing stocks typically have robust sales growth, increasing margins, and rising returns on capital,
and those that can maintain this trifecta year in and year out often become the legends of the investing world.
A company that generates cash isn’t automatically a winner.
Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.
Retailers are overhauling their operations as technology redefines the shopping experience. Still, secular trends are working against their favor as e-commerce continues to take share from brick and mortars.
This puts retail stocks in a tough spot, and over the past six months, the industry has pulled back by 6%. This drawdown is a stark contrast from the S&P 500’s 5.4% gain.
Shares of auto parts and accessories retailer O’Reilly Automotive (NASDAQ:ORLY) jumped 4.8% in the afternoon session after the company reported strong second-quarter 2025 financial results and raised its full-year outlook. The auto parts retailer announced a 4.1% increase in comparable store sales and an 11% rise in diluted earnings per share to $0.78 for the second quarter. Total revenue for the period grew 6% to $4.53 billion, while net income rose 7% to $669 million. Following the strong performance, O'Reilly raised its full-year 2025 guidance for comparable store sales. The positive report prompted favorable reactions from Wall Street analysts. For instance, UBS raised its price target on the stock to $115, and Wells Fargo increased its target to $105.
Auto parts and accessories retailer O’Reilly Automotive (NASDAQ:ORLY) met Wall Street’s revenue expectations in Q2 CY2025, with sales up 5.9% year on year to $4.53 billion. The company’s outlook for the full year was close to analysts’ estimates with revenue guided to $17.65 billion at the midpoint. Its GAAP profit of $0.78 per share was in line with analysts’ consensus estimates.
Auto parts and accessories retailer O’Reilly Automotive (NASDAQ:ORLY) will be reporting earnings this Wednesday after market hours. Here’s what to expect.
As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the auto parts retailer industry, including O'Reilly (NASDAQ:ORLY) and its peers.
