O'Reilly Automotive: Valuation Is Too Expensive For Me
Portfolio Pulse from
O'Reilly Automotive's stock is considered expensive at 29.5x forward earnings, leading to a hold rating despite strong fundamentals. The company reported solid 4Q24 results with 4.4% comps growth and $4.1 billion in revenue, but EPS missed expectations due to a one-time charge. Industry trends favoring complex car repairs support demand for its services.
February 14, 2025 | 8:00 am
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O'Reilly Automotive's stock is rated hold due to its high valuation of 29.5x forward earnings. The company showed strong 4Q24 performance with 4.4% comps growth and $4.1 billion in revenue, but EPS missed consensus due to a one-time charge. Industry trends support demand for its services.
The article highlights O'Reilly Automotive's strong fundamentals and industry tailwinds but notes its high valuation, leading to a hold rating. The missed EPS due to a one-time charge is a short-term concern, but the overall demand for its services remains strong.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100