Why O'Reilly Automotive (ORLY) Is Soaring in 2025 - NEW BOX OFFICE TO DAY

We recently released an article entitled Why These 15 Automotive Stocks and Components Are Soaring in 2025 In this piece, we will assess how O'Reilly Automotive, Inc. (NASDAQ:ORLY) measures up against other automotive and components companies.

Some automobile manufacturers have performed unexpectedly robustly in the present economic climate, particularly those supplying auto components. High-interest rates were anticipated to negatively impact all players within the automotive sector, and initial trade tariffs were aimed at nations producing the largest share of automotive parts for the U.S.

Despite these conditions, these stocks have performed admirably as elevated interest rates have hindered low-income individuals from purchasing new automobiles. Consequently, many people have chosen to maintain and repair their current vehicles, providing a boost to auto parts businesses over the last couple of years. With vehicle ages having reached an all-time peak of 12.6 years in 2024, this trend seems unlikely to reverse course quickly.

High-income customers continue to purchase new vehicles, which primarily accounts for the resilience of consumer spending overall. These are the key beneficiaries of this pattern.

Even when the overall market declines, certain sectors can still thrive remarkably well. For instance, I pinpointed 15 Financial Services Stocks Showing the Highest Gains in 2025 in another article.

Methodology

For this piece, I sifted through and highlighted the top-performing vehicles and parts stocks for the current year so far.

I'll also highlight how many hedge fund investors are involved with these stocks. We focus on the stocks that hedge funds accumulate because the rationale behind this is straightforward: our studies indicate that we can surpass the overall market performance by mimicking the leading equity choices made by successful hedge funds. Each quarter, our bi-monthly publication adopts a strategy which chooses fourteen small-cap and large-cap equities, achieving returns totaling 373.4% from May 2014 onwards, thereby exceeding its index marker by an impressive margin of 218 percentage points. see more details here ).

A technician adeptly replaces non-original components on a vehicle within an automotive workshop.

O'Reilly Automotive, Inc. (NASDAQ: ORLY )

Number of Hedge Fund holders in Q4 2024: 63

O'Reilly Automotive, Inc. (NASDAQ:ORLY), a major dealer of automotive components, equipment, and materials, caters to both professional mechanics and individuals who perform their own car repairs throughout the United States, Mexico, and Canada.

In 2025, O'Reilly Automotive, Inc.'s (NASDAQ:ORLY) stock was affected by their Q1 2025 financial report issued in April. They posted revenues of $4.14 billion, marking an uplift of $161 million from the prior year. Despite this growth in sales, the corporation fell short of projected earnings per share, leading to fluctuations in the stock value right after the disclosure.

Even though O’Reilly Automotive, Inc. (NASDAQ:ORLY) fell short on earnings per share expectations, the firm’s tactical investments and development strategies have strengthened investors' trust. In the first quarter of 2025, they launched 38 additional outlets throughout the U.S. and Mexico. They allocated $287 million towards capital expenses this quarter, estimating their full-year spending will range from $1.2 billion to $1.3 billion in 2025. This financial dedication reflects O'Reilly's pledge to expand and penetrate more markets.

The agreed-upon price target of $1,414.56 suggests an upward potential of 0.6%.

O'Reilly Automotive, Inc. (NASDAQ:ORLY) shares have increased by 18.60% so far this year.

Overall ORLY ranks 13th On our roster of rising vehicle and part inventories projected for 2025, we recognize the appeal of investing in ORLY. However, we firmly believe that AI equities present a stronger case with their potential for substantial gains over a brief period. An individual AI equity has seen growth from the start of 2025 despite many prominent AI shares declining approximately 25%. Should you seek an AI stock offering better prospects compared to ORLY yet trading below five times its earning value, review our detailed analysis provided in our latest report. cheapest AI stock .

READ NEXT: 20 Top AI Stocks You Should Consider Buying Today and 30 Top Stocks to Purchase Currently as Recommended by Millionaires .

Disclosure: None. This piece was initially published at Insider Monkey .