These are top 10 stocks traded on the Robinhood UK platform in July
The analyst’s comments underscore the company’s strategic investments and their expected contribution to future performance. O’Reilly (NASDAQ:ORLY)’s commitment to capital spending is seen as a key factor in its ability to outperform and justify its premium valuation in the market.O’Reilly Automotive’s stock continues to be recommended as a solid investment choice by UBS, with the belief that its robust performance warrants the higher multiples it commands. InvestingPro analysis reveals the company maintains a "GOOD" overall financial health score, though it’s currently trading above its Fair Value. The firm’s sustained Buy rating and price target reflect a belief in O’Reilly’s potential for steady growth and market share expansion in the coming year. For deeper insights into O’Reilly’s valuation and 12 additional ProTips, check out the comprehensive Pro Research Report available on InvestingPro.
O’Reilly Automotive is anticipated to gain from a modest industry improvement and benefit from market share gains following the shutdown of a close competitor. With a robust market capitalization of $75.5 billion and revenue growth of 5.25% in the last twelve months, the company maintains strong momentum. Analysts at UBS highlighted the company’s years of investment as a growth driver, noting that O’Reilly’s capital expenditures have averaged 4.7% of sales over the past five years. This figure is significantly higher than that of its peers, Advance Auto Parts (NYSE:AAP) and Genuine Parts Company (NYSE:GPC), which have averaged 2.9% and 1.5% of sales, respectively.
The analyst’s comments underscore the company’s strategic investments and their expected contribution to future performance. O’Reilly’s commitment to capital spending is seen as a key factor in its ability to outperform and justify its premium valuation in the market.
O’Reilly Automotive’s stock continues to be recommended as a solid investment choice by UBS, with the belief that its robust performance warrants the higher multiples it commands. The firm’s sustained Buy rating and price target reflect a belief in O’Reilly’s potential for steady growth and market share expansion in the coming year.
In other recent news, O’Reilly Automotive has been a focal point for numerous analyst firms. RBC Capital, Guggenheim, Truist Securities, and TD Cowen have all raised their price targets for the company, with Morgan Stanley (NYSE:MS) upgrading the stock to Overweight. These revisions reflect expectations of positive Q4 performance and anticipated growth in earnings per share (EPS) for 2025.
O’Reilly Automotive’s recent Q3 earnings per share (EPS) came in at $10.55, slightly missing estimates. The company has revised its 2024 guidance downward, projecting an EPS between $40.60 and $41.10. Despite this, there’s an increase in the company’s share repurchase program by $2 billion, bringing the total authorization to $27.75 billion.
In other developments, the company continues to expand its geographical reach, opening 47 new stores in Q3, which brings the total to 111 for the year. These recent developments reflect the continuous growth and strategic initiatives of O’Reilly Automotive.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.