O’Reilly Automotive, Inc. (ORLY) is a leading retailer of auto parts and accessories, serving both DIY car owners and professional mechanics. Headquartered in Springfield, Missouri, it operates across the U.S., Puerto Rico, Mexico, and Canada, offering an extensive catalog of parts, tools, and maintenance supplies. With strong roots in customer service and reliability, O’Reilly has grown into one of the most recognized names in the automotive retail space. Today, the company carries a market capitalization of $88 billion.

Companies worth $10 billion or more are generally classified as “large-cap stocks,” and O’Reilly comfortably sits in that category – it is no accident. The company’s rise is fueled by an expansive product lineup, robust distribution networks, and customer-friendly perks such as battery testing, tool rentals, and fluid recycling. By serving everyone from professional technicians to everyday drivers with equal ease, O’Reilly has built a reputation for reliability and scale. Add in sharp operational efficiency and a vast market reach, and it is clear why the company is a leader in the automotive aftermarket industry.

O’Reilly’s stock has demonstrated strong and steady performance on Wall Street. On Aug. 7, ORLY touched a 52-week high of $104.86, now just 1.1% off the peak. Over the past three months, shares of the automotive aftermarket retailer surged 15.1%, beating the S&P 500 Index’s ($SPX) 9.3% climb.

It is not just the short-term rally that stands out, but the past year tells an even better story, with shares rallying 36.6% against the benchmark’s 15.5% gain. And 2025 has been nothing short of stellar - ORLY stock rose 31.2% year-to-date (YTD), handily outpacing the S&P 500’s 9.8% gains.

ORLY’s bullish momentum is evident as the stock continues to trade confidently above its 200-day moving average. Since early July, it has also held strong above the 50-day mark, signaling sustained investor confidence and steady upward pressure despite minor market fluctuations.

This retail stock’s outperformance has had Wall Street sitting up straighter, spilling coffee, and double-checking their screens – it has been that impressive, and O’Reilly Automotive has earned every bit of the applause. A superbly run business, it boasts a wide economic moat, industry-leading profitability, and excellent capital allocation. Its growth story is backed by a resilient business model and steady expansion opportunities, enabling the stock to consistently outperform the benchmark.

One of O’Reilly’s biggest tailwinds is America’s aging vehicle fleet. With the average car now 12.8 years old, demand for aftermarket parts is surging. As vehicles age past their warranties, consumers turn to O’Reilly for maintenance and repairs. Add the rising number of cars on the road, and the company’s long-term growth prospects remain robust, with revenue growing and 210 new stores planned for 2025. 

What sets O’Reilly apart is its consistency. Whether the economy booms or slumps, demand stays strong. In economic booms, increased driving accelerates wear and tear, and in downturns, consumers delay new purchases but invest in repairs. That stability has powered 32 consecutive years of comparable same-store sales growth, with 2025 set to mark the 33rd. Investors are betting on that reliability - and winning.

In the automotive aftermarket race, ORLY continues to edge out rival Advance Auto Parts, Inc. (AAP), even as AAP has rallied 30.8% over the past 52 weeks and 29% YTD.

Analysts remain upbeat on O’Reilly Automotive’s momentum, expecting it to regain speed and possibly set fresh highs in the coming months. Overall, ORLY has a “Strong Buy” consensus rating from the 28 analysts covering the stock. The mean price target of $109.50 hints at a potential upside of 5.6% from current levels.