Track market-moving stories before they get noisy

Posted by Defense World Staff on Jul 22nd, 2026

Arvest Bank Trust Division lessened its position in O’Reilly Automotive, Inc. (NASDAQ:ORLY – Free Report) by 42.9% in the 1st quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 10,357 shares of the specialty retailer’s stock after selling 7,786 shares during the period. Arvest Bank Trust Division’s holdings in O’Reilly Automotive were worth $956,000 as of its most recent filing with the SEC.

Other hedge funds also recently modified their holdings of the company. Vanguard Group Inc. lifted its stake in O’Reilly Automotive by 0.6% in the fourth quarter. Vanguard Group Inc. now owns 79,730,143 shares of the specialty retailer’s stock valued at $7,272,186,000 after buying an additional 458,613 shares in the last quarter. State Street Corp increased its position in shares of O’Reilly Automotive by 0.4% in the fourth quarter. State Street Corp now owns 37,206,098 shares of the specialty retailer’s stock valued at $3,393,568,000 after acquiring an additional 140,387 shares during the last quarter. Geode Capital Management LLC raised its stake in shares of O’Reilly Automotive by 1.6% during the 4th quarter. Geode Capital Management LLC now owns 24,140,497 shares of the specialty retailer’s stock worth $2,201,555,000 after purchasing an additional 372,896 shares in the last quarter. Wellington Management Group LLP lifted its stake in O’Reilly Automotive by 25.1% in the fourth quarter. Wellington Management Group LLP now owns 14,755,276 shares of the specialty retailer’s stock valued at $1,345,829,000 after acquiring an additional 2,964,945 shares during the last quarter. Finally, Norges Bank acquired a new stake in O’Reilly Automotive in the 4th quarter valued at about $1,134,311,000. Institutional investors and hedge funds own 85.00% of the company’s stock.

Analyst Upgrades and Downgrades A number of equities analysts have commented on the stock. Citigroup reaffirmed a “buy” rating and set a $115.00 price objective (up from $110.00) on shares of O’Reilly Automotive in a research report on Friday, May 1st. Raymond James Financial reaffirmed an “outperform” rating and issued a $115.00 price objective on shares of O’Reilly Automotive in a report on Friday, May 1st. Wolfe Research set a $98.00 price target on shares of O’Reilly Automotive in a report on Wednesday, July 15th. Mizuho raised their price objective on O’Reilly Automotive from $105.00 to $110.00 and gave the company an “outperform” rating in a research note on Friday, May 8th. Finally, Robert W. Baird set a $110.00 target price on shares of O’Reilly Automotive in a research note on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat, O’Reilly Automotive has an average rating of “Moderate Buy” and an average target price of $110.70.

Get Our Latest Research Report on ORLY

O’Reilly Automotive Price Performance Shares of O’Reilly Automotive stock opened at $87.97 on Wednesday. The firm has a market cap of $72.90 billion, a price-to-earnings ratio of 28.75, a PEG ratio of 1.86 and a beta of 0.51. O’Reilly Automotive, Inc. has a one year low of $82.59 and a one year high of $108.71. The stock’s 50-day moving average is $88.55 and its 200 day moving average is $91.83.

O’Reilly Automotive (NASDAQ:ORLY – Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The specialty retailer reported $0.72 earnings per share for the quarter, beating the consensus estimate of $0.69 by $0.03. The company had revenue of $4.56 billion during the quarter, compared to analyst estimates of $4.46 billion. O’Reilly Automotive had a net margin of 14.30% and a negative return on equity of 263.22%. O’Reilly Automotive’s revenue for the quarter was up 10.2% compared to the same quarter last year. During the same quarter in the previous year, the business posted $9.35 EPS. O’Reilly Automotive has set its FY 2026 guidance at 3.150-3.250 EPS. On average, sell-side analysts expect that O’Reilly Automotive, Inc. will post 3.24 EPS for the current fiscal year.

Insider Activity In related news, CEO Brad W. Beckham sold 13,635 shares of the stock in a transaction on Friday, May 8th. The stock was sold at an average price of $95.00, for a total value of $1,295,325.00. Following the transaction, the chief executive officer directly owned 12,250 shares in the company, valued at $1,163,750. This trade represents a 52.68% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, SVP Philip M. Hopper sold 3,700 shares of the company’s stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $94.60, for a total transaction of $350,020.00. Following the transaction, the senior vice president owned 4,888 shares in the company, valued at approximately $462,404.80. The trade was a 43.08% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 105,730 shares of company stock valued at $9,815,388. Corporate insiders own 0.77% of the company’s stock.

About O’Reilly Automotive (Free Report)

O’Reilly Automotive, Inc is a leading retailer and distributor in the automotive aftermarket, supplying parts, tools, supplies and accessories for both professional service providers and do‑it‑yourself (DIY) customers. The company’s product assortment covers replacement parts, maintenance items, performance parts, collision components and shop equipment, complemented by diagnostic tools, batteries, chemicals and consumables. O’Reilly serves customers through company-operated retail stores, commercial sales programs for repair shops and maintenance fleets, and digital channels that support parts lookup, ordering and fulfillment.

The company operates a broad supply chain that includes regional distribution centers to support rapid replenishment of store inventory and commercial deliveries.

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SummaryO'Reilly Automotive remains a Buy, driven by robust financials, resilient operations, and significant long-term expansion potential.ORLY delivered a strong Q1, with 10.1% revenue growth, 8.1% comp sales, and 16% EPS growth, outperforming expectations.The potential acquisition of GPC's NAPA business could add scale but introduces financing and integration risks, reflected in a 4.4% share price drop.Valuation remains rich but justified by defensiveness, solid financial health, and international expansion, with intrinsic value estimated near the current market price. Edward Chaidez/iStock Editorial via Getty Images

Back when I first covered O'Reilly Automotive (ORLY), I initiated coverage with a Buy rating, highlighting the company's strong compounding, robust financials, and compelling international expansion potential.

With the stock

3.19K Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in ORLY over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

6.7.2026 22:30

Americké akciové indexy vykázaly v úvodní seanci po prodlouženém víkendu kladnou bilanci v čele s technologickým Nasdaqem (+1,12 %). Širší index S&P500 přidal 0,72 % a Dow Jones 0,29 %. Mírný zisk registrovaly také dluhopisy vyjma nejdelších maturit. Výnos 10letého vládního bondu se posunul na 4,47 % z pátečních 4,48 %. V červeném uzavřely drahé kovy. Zlato odepsalo 0,3 % na 4162 USD/oz, stříbro končilo slabší o 0,64 % na 62 USD/oz. V energetickém sektoru se dařilo zemnímu plynu, který zpevnil téměř o 1,7 % na 3,25 USD/mmbtu. Ropa končila beze změny na 68,7 USD/barel.

Závěrečné hodnoty:

Index Dow Jones 0,29 % na 53055,91 b.
Index Nasdaq Composite 1,12 % na 26121,16 b.
Index S&P 500 +0,72 % na 7537,43 b.

Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Sektor komunikací +1,6 % Zdravotní péče -1,2 % Informační technologie +1,3 % Utility -1,1 % Nezbytná spotřeba +1 % Reality -0,9 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Arista Networks (ANET) +8,3 % O'Reilly Automotive (ORLY) -6,7 % Western Digital (WDC) +7,1 % AutoZone (AZO) -6,4 % Tesla (TSLA) +6,7 % Alexandria Real Estate Equities (ARE) -5,2 % Advanced Micro Devices (AMD) +6,6 % Constellation Brands (STZ) -4,9 % NetApp (NTAP) +6,1 % Tractor Supply (TSCO) -4,8 % Zdroj: Reuters

David Lamač
Fio banka, a.s.
Prohlášení

6.7.2026 15:50

Index Dow Jones -0,1 % na 52848,66 b. S&P 500 +0,44 % na 7516,13 b. Nasdaq Composite +0,91 % na 26067,65 b.

Obchodní den po prodlouženém víkendu začíná smíšeně. Index Dow Jones kosmeticky ztrácí, povedlo se mu ale po otevření poprvé překonat 53000 b. Tahounem indexu s růstem nad 2 % je Caterpillar (2,55 %) a Goldmman Sachs Group (2,41 %).

Z indexu S&P 500 posilují zejména informační technologie, kterých růst se propisuje i do indexu Nasdaq. Nejslabším sektorem je zdravotnictví. Pfizer ztrácí 2,06 %, Eli Lilly odepisuje 1,16 % a Johnson & Johnson klesá o 1,81 %.

Z technologií dnes opět rostou čipové společnosti. Broadcom a AMD posilují o víc, než 6 %, Nvidia se obchoduje na kladné nule.

Microsoft (-1,65 %) se chystá na další vlnu propouštění, která tentokrát zasáhne divize prodeje a Xbox. Celkem se má společnost zeštíhlit o přibližně 2 % pracovní síly, tedy 4 800 míst. Společnost se snaží o zefektivnění nákladů a tlačí na zvyšování efektivity všech divizí. Microsoft zvažuje i změnu struktury herní divize s možným prodejem několika studií.

OPEC o víkendu oznámil záměr zvýšit těžbu černého zlata. V srpnu by se měl objem navýšit o 188 tis barelů denně. Futures kontrakty na WTI reagují mírným poklesem. Aktuálně se barel obchoduje pod USD 69.

Index S&P 500 +0,44 % na 7516,13 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Informační technologie +1,6 % Zdravotní péče -1,8 % Průmysl +1,2 % Nezbytná spotřeba -0,8 % Finanční sektor +0,2 % Reality -0,6 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Western Digital Corp (WDC) +9,0 % O'Reilly Automotive (ORLY) -5,2 % Advanced Micro Devices (AMD) +7,5 % AutoZone (AZO) -4,7 % Vertiv Holdings (VRT) +7,4 % Constellation Brands (STZ) -3,8 % Teradyne (TER) +7,1 % SBA Communications Corp (SBAC) -3,7 % GE Vernova (GEV) +6,5 % Genuine Parts (GPC) -3,6 %
Marek Kameništiak
Fio banka, a.s.
Prohlášení

For Immediate ReleaseChicago, IL – June 25, 2026 – Today, Zacks Equity Research O’Reilly Automotive (ORLY - Free Report) and Advance Auto Parts (AAP - Free Report) .

Industry: Auto Parts

Link: https://www.zacks.com/commentary/2941943/2-auto-retail-parts-stocks-that-are-still-in-focus-in-a-tough-market

The Zacks Automotive - Retail and Wholesale - Parts industry is navigating a tough environment. High interest rates continue to put pressure on dealer margins and consumer spending. Energy cost volatility, despite easing somewhat following the reopening of the Strait of Hormuz, keeps logistics and distribution expenses elevated.

Supply chain constraints mean inventory restocking will remain a gradual, uneven process in the near term. However, a key structural tailwind partly offsetting these challenges is the rising average U.S. vehicle age, which keeps demand for maintenance and replacement parts resilient. Two industry players, O’Reilly Automotive and Advance Auto Parts, are worth considering despite the overall subdued outlook.

About the IndustryThe Zacks Automotive - Retail and Wholesale - Parts industry players execute several functions. These include retailing, distribution and installation of vehicle parts, equipment and accessories. Vehicle parts and accessories include seat covers, antifreeze, engine additives, wiper blades, batteries, brake system components, belts, chassis parts, driveline parts, engine parts and fuel pumps. Consumers have two options. They can either opt for repairing vehicles on their own (the ‘do-it-yourself’ or ‘DIY’ segment) or take the assistance of a professional repair facility (the "do-it-for-me" or "DIFM" segment). The industry is highly competitive and undergoing a radical change, with evolving customer expectations and technological innovation acting as game changers.

Key Investing ThemesInterest Rates & Financing Costs: Interest rate relief remains unlikely in the near term, with further hikes still possible if inflation persists. For auto retail parts businesses, this translates into elevated borrowing costs for both dealers financing inventory and consumers purchasing vehicles or parts on credit. High financing rates compress margins and slow down discretionary spending on non-essential parts and accessories, forcing the industry to operate lean while managing tighter cash flow constraints across the supply chain.

Energy Prices & Inflation: The recent deal to reopen the Strait of Hormuz has resumed oil tanker movement, signaling that the peak of energy-driven inflation may be passing. Gas prices have fallen notably from May highs, offering some consumer relief. However, risk premiums on regional tanker traffic are unlikely to vanish quickly, keeping energy costs elevated. For parts retailers, this affects logistics, shipping, and distribution expenses, which remain a persistent pressure point on overall operational costs.

Inventory Restocking Challenges: Depleted inventories across the auto parts supply chain will take months to fully replenish. Even as energy and supply conditions gradually stabilize, the pipeline for restocking remains slow and uneven. Parts retailers face the dual challenge of meeting current demand while managing the cost and timing of incoming stock. Delays in replenishment can lead to lost sales, customer dissatisfaction, and increased pressure on parts retailers to source from costlier alternative suppliers.

Aging Vehicle Fleet Supports Demand: With the average U.S. vehicle age hitting a record 12.8 years, demand for maintenance and replacement parts has never been more reliable. Older vehicles require more frequent repairs and part replacements, directly benefiting the aftermarket industry. Additionally, consumers are increasingly holding onto their existing vehicles longer rather than purchasing new ones — a trend amplified by high car prices and tight credit conditions. This sustained behavioral shift provides a strong and consistent tailwind for auto parts retailers and repair shops, helping offset broader industry headwinds.

Zacks Industry Rank Signals Lackluster ProspectsThe Zacks Auto Retail & Wholesale Parts industry is within the broader Zacks Auto-Tires-Trucks sector. The industry currently carries a Zacks Industry Rank #180, which places it in the bottom 27% of roughly 245 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are getting pessimistic about this group’s earnings growth potential. Over the past year, the industry's earnings estimate for 2026 has declined 10%.

Before we present a few stocks that could still be on your watchlist, let’s take a look at the industry’s shareholder returns and current valuation first.

Industry Lags Sector and S&P 500The Zacks Auto Retail and Wholesale Parts industry has underperformed the Auto, Tires and Truck sector and the Zacks S&P 500 composite over the past year. The industry has declined 9% over this period against the sector and S&P 500’s growth of 21% and 27%, respectively.

Industry's Current ValuationSince automotive companies are debt-laden, it makes sense to value them based on the Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization (EV/EBITDA) ratio.

Based on the trailing 12-month enterprise value to EBITDA (EV/EBITDA), the industry is currently trading at 22.87X compared with the S&P 500’s 18.49X and the sector’s 27.8X.

Over the past five years, the industry has traded as high as 32.64X and as low as 22.15X, with the median being 26.22X.

2 Stocks to Watch NowO'Reilly is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States. The company continues to expand its footprint aggressively, targeting 225-235 net new store openings in 2026 after adding 59 net new stores during the first quarter across the United States, Mexico and Canada. O’Reilly’s business remains resilient, with the company delivering record revenues for 33 consecutive years.

Management reaffirmed its 2026 comparable-store sales growth outlook of 3-5%, signaling confidence in continued demand and execution. O’Reilly also remains committed to shareholder returns through substantial share repurchases. In the first quarter, O’Reilly bought back 10 million shares for $923 million and repurchased an additional 3.6 million shares for $338 million through April 29, leaving roughly $1.14 billion available under its existing authorization.

O’Reilly currently carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for its 2026 and 2027 EPS implies year-over-year growth of 9% and 11%, respectively. The consensus mark for the current and next year has moved north by 4 cents and 6 cents, respectively, over the past 60 days. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Advance Auto primarily sells replacement parts, batteries, accessories, and maintenance products for a broad range of vehicles. Following the completion of its store footprint optimization program in 2025, the company has shifted its focus toward growth in markets where it already enjoys strong store density. Management plans to open 40-45 new stores in 2026 while expanding its distribution network to improve product availability and delivery speed.

Advance Auto is also pursuing supply chain consolidation and implementing a new operating model designed to enhance efficiency and strengthen service levels, particularly for professional customers. These initiatives are expected to support a return to growth, with management projecting 1-2% sales growth in 2026. Profitability is also anticipated to improve, with adjusted operating margins expected to reach 3.8%-4.5% this year and expand further in 2027.

Advance Auto currently carries a Zacks Rank #3. The Zacks Consensus Estimate for its 2026 and 2027 EPS implies year-over-year growth of 30% and 34%, respectively. The consensus mark for the current and next year has moved north by 10 cents and 3 cents, respectively, over the past 30 days.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.

The Zacks Automotive - Retail and Wholesale - Parts industry is navigating a tough environment. High interest rates continue to put pressure on dealer margins and consumer spending. Energy cost volatility, despite easing somewhat following the reopening of the Strait of Hormuz, keeps logistics and distribution expenses elevated. Supply chain constraints mean inventory restocking will remain a gradual, uneven process in the near term. However, a key structural tailwind partly offsetting these challenges is the rising average U.S. vehicle age, which keeps demand for maintenance and replacement parts resilient. Two industry players, O’Reilly Automotive (ORLY - Free Report) and Advance Auto Parts (AAP - Free Report) , are worth considering despite the overall subdued outlook.

About the Industry The Zacks Automotive - Retail and Wholesale - Parts industry players execute several functions. These include retailing, distribution and installation of vehicle parts, equipment and accessories. Vehicle parts and accessories include seat covers, antifreeze, engine additives, wiper blades, batteries, brake system components, belts, chassis parts, driveline parts, engine parts and fuel pumps. Consumers have two options. They can either opt for repairing vehicles on their own (the ‘do-it-yourself’ or ‘DIY’ segment) or take the assistance of a professional repair facility (the "do-it-for-me" or "DIFM" segment). The industry is highly competitive and undergoing a radical change, with evolving customer expectations and technological innovation acting as game changers.

Key Investing Themes Interest Rates & Financing Costs: Interest rate relief remains unlikely in the near term, with further hikes still possible if inflation persists. For auto retail parts businesses, this translates into elevated borrowing costs for both dealers financing inventory and consumers purchasing vehicles or parts on credit. High financing rates compress margins and slow down discretionary spending on non-essential parts and accessories, forcing the industry to operate lean while managing tighter cash flow constraints across the supply chain.

Energy Prices & Inflation: The recent deal to reopen the Strait of Hormuz has resumed oil tanker movement, signaling that the peak of energy-driven inflation may be passing. Gas prices have fallen notably from May highs, offering some consumer relief. However, risk premiums on regional tanker traffic are unlikely to vanish quickly, keeping energy costs elevated. For parts retailers, this affects logistics, shipping, and distribution expenses, which remain a persistent pressure point on overall operational costs.

Inventory Restocking Challenges: Depleted inventories across the auto parts supply chain will take months to fully replenish. Even as energy and supply conditions gradually stabilize, the pipeline for restocking remains slow and uneven. Parts retailers face the dual challenge of meeting current demand while managing the cost and timing of incoming stock. Delays in replenishment can lead to lost sales, customer dissatisfaction, and increased pressure on parts retailers to source from costlier alternative suppliers.

Aging Vehicle Fleet Supports Demand: With the average U.S. vehicle age hitting a record 12.8 years, demand for maintenance and replacement parts has never been more reliable. Older vehicles require more frequent repairs and part replacements, directly benefiting the aftermarket industry. Additionally, consumers are increasingly holding onto their existing vehicles longer rather than purchasing new ones — a trend amplified by high car prices and tight credit conditions. This sustained behavioral shift provides a strong and consistent tailwind for auto parts retailers and repair shops, helping offset broader industry headwinds.

Zacks Industry Rank Signals Lackluster Prospects The Zacks Auto Retail & Wholesale Parts industry is within the broader Zacks Auto-Tires-Trucks sector. The industry currently carries a Zacks Industry Rank #180, which places it in the bottom 27% of roughly 245 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are getting pessimistic about this group’s earnings growth potential. Over the past year, the industry's earnings estimate for 2026 has declined 10%.

Before we present a few stocks that could still be on your watchlist, let’s take a look at the industry’s shareholder returns and current valuation first.

Industry Lags Sector and S&P 500 The Zacks Auto Retail and Wholesale Parts industry has underperformed the Auto, Tires and Truck sector and the Zacks S&P 500 composite over the past year. The industry has declined 9% over this period against the sector and S&P 500’s growth of 21% and 27%, respectively.

One-Year Price Performance

Industry's Current Valuation Since automotive companies are debt-laden, it makes sense to value them based on the Enterprise Value/ Earnings before Interest, Tax, Depreciation and Amortization (EV/EBITDA) ratio.

Based on the trailing 12-month enterprise value to EBITDA (EV/EBITDA), the industry is currently trading at 22.87X compared with the S&P 500’s 18.49X and the sector’s 27.8X.

Over the past five years, the industry has traded as high as 32.64X and as low as 22.15X, with the median being 26.22X, as the chart below shows.

EV/EBITDA Ratio (Past 5 Years)

2 Stocks to Watch Now O'Reilly is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States. The company continues to expand its footprint aggressively, targeting 225-235 net new store openings in 2026 after adding 59 net new stores during the first quarter across the United States, Mexico and Canada. O’Reilly’s business remains resilient, with the company delivering record revenues for 33 consecutive years.

Management reaffirmed its 2026 comparable-store sales growth outlook of 3-5%, signaling confidence in continued demand and execution. O’Reilly also remains committed to shareholder returns through substantial share repurchases. In the first quarter, O’Reilly bought back 10 million shares for $923 million and repurchased an additional 3.6 million shares for $338 million through April 29, leaving roughly $1.14 billion available under its existing authorization.

O’Reilly currently carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for its 2026 and 2027 EPS implies year-over-year growth of 9% and 11%, respectively. The consensus mark for the current and next year has moved north by 4 cents and 6 cents, respectively, over the past 60 days. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Price & Consensus: ORLY

Advance Auto primarily sells replacement parts, batteries, accessories, and maintenance products for a broad range of vehicles. Following the completion of its store footprint optimization program in 2025, the company has shifted its focus toward growth in markets where it already enjoys strong store density. Management plans to open 40-45 new stores in 2026 while expanding its distribution network to improve product availability and delivery speed.

Advance Auto is also pursuing supply chain consolidation and implementing a new operating model designed to enhance efficiency and strengthen service levels, particularly for professional customers. These initiatives are expected to support a return to growth, with management projecting 1-2% sales growth in 2026. Profitability is also anticipated to improve, with adjusted operating margins expected to reach 3.8%-4.5% this year and expand further in 2027.

Advance Auto currently carries a Zacks Rank #3. The Zacks Consensus Estimate for its 2026 and 2027 EPS implies year-over-year growth of 30% and 34%, respectively. The consensus mark for the current and next year has moved north by 10 cents and 3 cents, respectively, over the past 30 days.

Price & Consensus: AAP

© Vadi Fuoco / Shutterstock.com

Gabelli Equity Trust (NYSE:GAB) has quietly become one of the most beloved income vehicles among retail investors, and the math behind that loyalty is straightforward: a 9.5% annualized yield paid quarterly, a founder who keeps buying shares with his own money, and a recent rights offering oversubscribed by more than $117 million. The question income investors actually need answered is whether that yield is real money or a slow return of their own capital dressed up as income.

Gabelli Equity Trust is a closed-end management investment company launched in August 1986 with $2.1 billion in net assets. Shares trade around $6, down 7% year to date but up 17% over the past year.

How the Distribution Actually Gets Funded GAB runs a managed minimum distribution policy targeting 10% of average net asset value annually, paid out as $0.15 per share each quarter. That rate has held for 16 consecutive quarters going back to Q1 2022. The fund held quarterly payments steady through the 2008 crisis and the 2020 pandemic, which matters because most CEFs with similar yields have cut at least once in that window.

The funding source is where readers need to pay attention. Unlike an equity ETF that passes through underlying dividends, GAB’s distribution is funded by a combination of portfolio dividend income, realized capital gains, and, when needed, return of capital. The fund uses preferred shares for leverage and holds at least 80% of assets in equities, so the distribution ultimately depends on the total return of a concentrated portfolio of quality compounders.

The Holdings Doing the Heavy Lifting The top of the book reads like a value investor’s wish list: Berkshire Hathaway, AMETEK, American Express, Mastercard, Deere, Curtiss-Wright, Rolls-Royce, O’Reilly Automotive, Republic Services, and Rollins. Sector weights lean into Financial Services at 14%, Equipment and Supplies at 9%, and Food and Beverage at 7%.

The underlying book skews toward low-yielders: Berkshire pays nothing, Mastercard yields under 1%, and O’Reilly returns cash through buybacks rather than dividends. That tells you everything about how GAB generates its 9.5% payout: the fund sells appreciated positions and distributes the gains. When markets cooperate, this works beautifully. When they do not, distributions can come partially from return of capital, which is effectively your own money handed back to you with a tax-efficient wrapper.

Signals Pointing Toward Durability Insider and institutional behavior has been unusually loud. Founder Mario Gabelli purchased 500,000 shares in December 2025 for roughly $5 million, with additional buying in early 2026. Envestnet Asset Management increased its stake by 762%, and J.W. Cole Advisors added 75% to its position. Founders buying $5 million of their own fund is a meaningful signal.

The Counterargument Worth Hearing Critics have grounds. The expense ratio runs 1.6%, steep compared with passive equity funds. A February 2025 Seeking Alpha analysis flagged underperformance versus the S&P 500 over five years and reliance on unrealized gains. With the 10-year Treasury near 4%, the spread GAB offers over risk-free income has narrowed.

The Verdict The $0.15 quarterly payout looks safe based on policy commitment, distribution history through two crises, and the quality of the underlying book. The riskier assumption is that the full 9.5% represents pure income. A portion will be return of capital in flat or down years, which erodes NAV over time. GAB makes sense for retail income investors who understand CEF mechanics and want predictable cash flow from a leveraged value portfolio. It makes less sense for anyone expecting the yield and the principal to both grow untouched.

First quarter comparable store sales growth of 8.1%16% increase in first quarter diluted earnings per share to $0.72$1 billion net cash provided by operating activities year-to-date
SPRINGFIELD, Mo., April 29, 2026 (GLOBE NEWSWIRE) -- O’Reilly Automotive, Inc. (the “Company” or “O’Reilly”) (Nasdaq: ORLY), a leading retailer in the automotive aftermarket industry, today announced record revenue and earnings for its first quarter ended March 31, 2026.

1st Quarter Financial Results

Brad Beckham, O’Reilly’s CEO, commented, “We are pleased to report a strong start to 2026, highlighted by an 8.1% increase in comparable store sales and a 16% increase in our first quarter diluted earnings per share. Team O’Reilly delivered comparable store sales results exceeding our expectations in both professional and DIY, with double-digit growth in our professional business and mid-single digit growth in DIY. Our ability to drive productivity in our business and translate robust sales growth into a 14% increase in operating profit is the direct result of our Team’s focus on prudent expense management. I would like to thank all of our Team Members for their incredible hard work in the first quarter and their relentless focus on providing unsurpassed service to our customers each and every day. We look forward to the opportunities we have to grow our market share in 2026 and are encouraged by the stable demand backdrop in our industry.”

Sales for the first quarter of 2026 increased $424 million, or 10%, to $4.56 billion from $4.14 billion for the same period one year ago. Gross profit for the first quarter of 2026 increased 11% to $2.35 billion (or 51.5% of sales) from $2.12 billion (or 51.3% of sales) for the same period one year ago. Selling, general and administrative expenses for the first quarter of 2026 increased 9% to $1.51 billion (or 33.0% of sales) from $1.38 billion (or 33.4% of sales) for the same period one year ago. Operating income for the first quarter of 2026 increased 14% to $842 million (or 18.5% of sales) from $741 million (or 17.9% of sales) for the same period one year ago.

Net income for the first quarter of 2026 increased $66 million, or 12%, to $604 million (or 13.2% of sales) from $538 million (or 13.0% of sales) for the same period one year ago. Diluted earnings per common share for the first quarter of 2026 increased 16% to $0.72 on 843 million shares versus $0.62 on 864 million shares for the same period one year ago.

1st Quarter Comparable Store Sales Results

Comparable store sales are calculated based on the change in sales for U.S. stores open at least one year and exclude sales of specialty machinery, sales to independent parts stores, and sales to Team Members. Online sales for ship-to-home orders and pick-up-in-store orders for U.S. stores open at least one year are included in the comparable store sales calculation. Comparable store sales increased 8.1% for the first quarter ended March 31, 2026, on top of 3.6% for the same period one year ago.

Share Repurchase Program

During the first quarter ended March 31, 2026, the Company repurchased 10.0 million shares of its common stock, at an average price per share of $92.45, for a total investment of $923 million. Excise tax on shares repurchased, assessed at one percent of the fair market value of shares repurchased, was $9.2 million for the three months ended March 31, 2026. Subsequent to the end of the first quarter and through the date of this release, the Company repurchased an additional 3.6 million shares of its common stock, at an average price per share of $92.83, for a total investment of $338 million. The Company has repurchased a total of 1.48 billion shares of its common stock under its share repurchase program since the inception of the program in January of 2011 and through the date of this release, at an average price of $19.38, for a total aggregate investment of $28.61 billion. As of the date of this release, the Company had approximately $1.14 billion remaining under its current share repurchase authorization.

Updated Full-Year 2026 Guidance

The table below outlines the Company’s updated guidance for selected full-year 2026 financial data:

     For the Year Ending  December 31, 2026Net, new store openings 225 to 235Comparable store sales 3.0% to 5.0%Total revenue $18.7 billion to $19.0 billionGross profit as a percentage of sales 51.5% to 52.0%Operating income as a percentage of sales 19.3% to 19.8%Effective income tax rate 22.6%
Diluted earnings per share(1) $3.15 to $3.25Net cash provided by operating activities $3.1 billion to $3.5 billionCapital expenditures $1.3 billion to $1.4 billionFree cash flow(2) $1.8 billion to $2.1 billion (1)Weighted-average shares outstanding, assuming dilution, used in the denominator of this calculation, includes share repurchases made by the Company through the date of this release.(2)Free cash flow is a non-GAAP financial measure. The table below reconciles Free cash flow guidance to Net cash provided by operating activities guidance, the most directly comparable GAAP financial measure:               For the Year Ending (in millions) December 31, 2026 Net cash provided by operating activities $3,110 to $3,520 Less:Capital expenditures  1,300 to  1,400  Excess tax benefit from share-based compensation payments  10 to  20 Free cash flow $1,800 to $2,100           Non-GAAP Information

This release contains certain financial information not derived in accordance with United States generally accepted accounting principles (“GAAP”). These items include adjusted debt to earnings before interest, taxes, depreciation, amortization, share-based compensation, and rent (“EBITDAR”) and free cash flow. The Company does not, nor does it suggest investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, GAAP financial information. The Company believes that the presentation of adjusted debt to EBITDAR and free cash flow provide meaningful supplemental information to both management and investors that is indicative of the Company’s core operations. The Company has included a reconciliation of this additional information to the most comparable GAAP measure in the table above and the selected financial information below.

Earnings Conference Call Information

The Company will host a conference call on Thursday, April 30, 2026, at 10:00 a.m. Central Time to discuss its results as well as future expectations. Investors may listen to the conference call live on the Company’s website at www.OReillyAuto.com by clicking on “Investor Relations.” Interested analysts are invited to join the call. The dial-in number for the call is (888) 506-0062 and the conference call identification number is 264620. A replay of the conference call will be available on the Company’s website through Thursday, April 29, 2027.

About O’Reilly Automotive, Inc.

O’Reilly Automotive, Inc. was founded in 1957 by the O’Reilly family and is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States, serving both the do-it-yourself and professional service provider markets. Visit the Company’s website at www.OReillyAuto.com for additional information about O’Reilly, including access to online shopping and current promotions, store locations, hours and services, employment opportunities, and other programs. As of March 31, 2026, the Company operated 6,644 stores across 48 U.S. states, Puerto Rico, Mexico, and Canada.

Forward-Looking Statements

The Company claims the protection of the safe-harbor for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by forward-looking words such as “estimate,” “may,” “could,” “will,” “believe,” “expect,” “would,” “consider,” “should,” “anticipate,” “project,” “plan,” “intend,” “guidance,” “target,” or similar words. In addition, statements contained within this press release that are not historical facts are forward-looking statements, such as statements discussing, among other things, expected growth, store development, integration and expansion strategy, business strategies, future revenues, and future performance. These forward-looking statements are based on estimates, projections, beliefs, and assumptions and are not guarantees of future events and results. Such statements are subject to risks, uncertainties, and assumptions, including, but not limited to, the economy in general; inflation; consumer debt levels; product demand; a public health crisis; the market for auto parts; competition; weather; trade disputes and changes in trade policies, including the imposition of new or increased tariffs; availability of key products and supply chain disruptions; business interruptions, including terrorist activities, war and the threat of war; failure to protect our brand and reputation; challenges in international markets; volatility of the market price of our common stock; our increased debt levels; credit ratings on public debt; damage, failure, or interruption of information technology systems, including information security and cyber-attacks; historical growth rate sustainability; our ability to hire and retain qualified employees; risks associated with the performance of acquired businesses; and governmental regulations. Actual results may materially differ from anticipated results described or implied in these forward-looking statements. Please refer to the “Risk Factors” section of the annual report on Form 10-K for the year ended December 31, 2025, and subsequent Securities and Exchange Commission filings, for additional factors that could materially affect the Company’s financial performance. Forward-looking statements speak only as of the date they were made, and the Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.

  For further information contact:Investor Relations Contacts Leslie Skorick (417) 874-7142 Eric Bird (417) 868-4259   Media Contact Sonya Cox (417) 427-8071    O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)            March 31, 2026 March 31, 2025 December 31, 2025  (Unaudited) (Unaudited) (Note)Assets         Current assets:         Cash and cash equivalents $252,632  $191,248  $193,793 Accounts receivable, net  431,173   392,168   389,793 Amounts receivable from suppliers  165,033   129,921   159,900 Inventory  5,810,121   5,172,436   5,731,385 Other current assets  308,377   143,694   269,406 Total current assets  6,967,336   6,029,467   6,744,277           Property and equipment, at cost  10,440,524   9,450,387   10,222,249 Less: accumulated depreciation and amortization  4,065,527   3,684,666   3,964,824 Net property and equipment  6,374,997   5,765,721   6,257,425           Operating lease, right-of-use assets  2,450,393   2,374,177   2,391,150 Goodwill  953,035   933,130   948,208 Other assets, net  191,417   191,380   197,193 Total assets $16,937,178  $15,293,875  $16,538,253           Liabilities and shareholders’ deficit         Current liabilities:         Accounts payable $7,237,126  $6,535,532  $7,103,684 Self-insurance reserves  321,896   154,013   297,304 Accrued payroll  152,357   132,965   119,603 Accrued benefits and withholdings  256,015   214,547   240,072 Income taxes payable  6,996   137,142   13,957 Current portion of operating lease liabilities  445,416   425,330   439,907 Other current liabilities  804,462   910,977   561,294 Total current liabilities  9,224,268   8,510,506   8,775,821           Long-term debt  6,195,311   5,651,821   6,016,904 Operating lease liabilities, less current portion  2,090,498   2,026,668   2,034,688 Deferred income taxes  224,411   236,572   211,210 Other liabilities  269,745   225,764   262,982           Shareholders’ equity (deficit):         Common stock, $0.01 par value:         Authorized shares – 1,250,000,000         Issued and outstanding shares –         832,292,716 as of March 31, 2026,         856,702,725 as of March 31, 2025, and         841,909,238 as of December 31, 2025  8,323   8,567   8,419 Additional paid-in capital  1,537,430   1,476,741   1,530,292 Retained deficit  (2,638,068)  (2,805,929)  (2,328,817)Accumulated other comprehensive income (loss)  25,260   (36,835)  26,754 Total shareholders’ deficit  (1,067,055)  (1,357,456)  (763,352)          Total liabilities and shareholders’ deficit $16,937,178  $15,293,875  $16,538,253               Note: The balance sheet at December 31, 2025, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements.

 O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share data)         For the Three Months Ended  March 31,  2026  2025 Sales $4,560,539  $4,136,924 Cost of goods sold, including warehouse and distribution expenses  2,213,328   2,015,439 Gross profit  2,347,211   2,121,485        Selling, general and administrative expenses  1,505,603   1,380,019 Operating income  841,608   741,466        Other income (expense):      Interest expense  (62,745)  (57,564)Interest income  1,748   1,664 Other, net  (522)  (1,215)Total other expense  (61,519)  (57,115)       Income before income taxes  780,089   684,351 Provision for income taxes  175,908   145,866 Net income $604,181  $538,485        Earnings per share-basic:      Earnings per share $0.72  $0.63 Weighted-average common shares outstanding – basic  838,578   859,564        Earnings per share-assuming dilution:      Earnings per share $0.72  $0.62 Weighted-average common shares outstanding – assuming dilution  842,516   864,331            O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)         For the Three Months Ended  March 31,  2026  2025 Operating activities:      Net income $604,181  $538,485 Adjustments to reconcile net income to net cash provided by operating activities:      Depreciation and amortization of property, equipment and intangibles  135,361   122,224 Amortization of debt discount and issuance costs  1,887   1,851 Deferred income taxes  13,291   (11,159)Share-based compensation programs  8,816   8,444 Other  1,987   3,191 Changes in operating assets and liabilities:      Accounts receivable  (45,716)  (37,758)Inventory  (79,069)  (75,081)Accounts payable  135,531   9,952 Income taxes payable  951   138,513 Other  255,693   56,458 Net cash provided by operating activities  1,032,913   755,120        Investing activities:      Purchases of property and equipment  (244,447)  (286,951)Proceeds from sale of property and equipment  1,542   1,948 Other, including acquisitions, net of cash acquired  (1,751)  — Net cash used in investing activities  (244,656)  (285,003)       Financing activities:      Net (payments) proceeds of commercial paper  (163,887)  129,288 Proceeds from the issuance of long-term debt  847,365   — Principal payments on long-term debt  (500,000)  — Payment of debt issuance costs  (5,909)  (3,801)Repurchases of common stock  (922,947)  (559,432)Net proceeds from issuance of common stock  16,609   24,926 Other  (270)  (433)Net cash used in financing activities  (729,039)  (409,452)       Effect of exchange rate changes on cash  (379)  338 Net increase in cash and cash equivalents  58,839   61,003 Cash and cash equivalents at beginning of the period  193,793   130,245 Cash and cash equivalents at end of the period $252,632  $191,248        Supplemental disclosures of cash flow information:      Income taxes paid $18,909  $16,904 Interest paid, net of capitalized interest  43,544   39,424            O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(Unaudited)          For the Twelve Months Ended  March 31,Adjusted Debt to EBITDAR: 2026 2025(In thousands, except adjusted debt to EBITDAR ratio)      GAAP debt $6,195,311 $5,651,821Add:Letters of credit  197,892  127,264 Unamortized discount and debt issuance costs  29,689  27,679 Six-times rent expense  2,986,494  2,771,640Adjusted debt $9,409,386 $8,578,404       GAAP net income $2,603,905 $2,377,927Add:Interest expense  240,245  222,964 Provision for income taxes  732,004  651,098 Depreciation and amortization  524,367  474,468 Share-based compensation expense  35,487  30,353 Rent expense(i)  497,749  461,940EBITDAR $4,633,757 $4,218,750       Adjusted debt to EBITDAR  2.03  2.03 (i)The table below outlines the calculation of Rent expense and reconciles Rent expense to Total lease cost, per ASC 842, the most directly comparable GAAP financial measure, for the twelve months ended March 31, 2026 and 2025 (in thousands):             For the Twelve Months Ended   March 31,   2026 2025 Total lease cost, per ASC 842 $598,987 $558,415 Less:Variable non-contract operating lease components, related to property taxes and insurance  101,238  96,475 Rent expense $497,749 $461,940                    March 31,  2026 2025Selected Balance Sheet Ratios:        Inventory turnover(1)  1.6  1.6Average inventory per store (in thousands)(2) $874 $806Accounts payable to inventory(3)  124.6%  126.4%                     For the Three Months Ended   March 31,   2026 2025Reconciliation of Free Cash Flow (in thousands):      Net cash provided by operating activities $1,032,913 $755,120Less:Capital expenditures  244,447  286,951 Excess tax benefit from share-based compensation payments  3,352  12,925Free cash flow $785,114 $455,244                 For the Three Months Ended  March 31,  2026 2025Revenue Disaggregation (in thousands):     Sales to do-it-yourself customers$2,190,132 $2,051,859Sales to professional service provider customers  2,290,784  1,998,593Other sales and sales adjustments  79,623  86,472Total sales $4,560,539 $4,136,924                   For the Three Months Ended For the Twelve Months Ended  March 31, March 31,  2026 2025  2026 2025 Store Count:        Beginning domestic store count 6,447 6,265  6,298 6,131 New stores opened 48 33  197 167 Stores closed — —  — — Ending domestic store count 6,495 6,298  6,495 6,298          Beginning Mexico store count 112 87  93 63 New stores opened 9 6  28 30 Stores closed — —  — — Ending Mexico store count 121 93  121 93          Beginning Canada store count 26 26  25 23 New stores opened 2 —  3 3 Stores closed — (1) — (1)Ending Canada store count 28 25  28 25          Total ending store count 6,644 6,416  6,644 6,416                            For the Three Months Ended For the Twelve Months Ended  March 31, March 31,  2026 2025 2026 2025Store and Team Member Information:            Total employment  93,973  93,419      Square footage (in thousands)(4)  52,229  49,371      Sales per weighted-average square foot(4)(5) $85.94 $82.22 $349.36 $341.85Sales per weighted-average store (in thousands)(4)(6) $688 $643 $2,774 $2,650              (1)Calculated as cost of goods sold for the last 12 months divided by average inventory. Average inventory is calculated as the average of inventory for the trailing four quarters used in determining the denominator.(2)Calculated as inventory divided by store count at the end of the reported period.(3)Calculated as accounts payable divided by inventory.(4)Represents O’Reilly’s U.S. and Puerto Rico operations only.(5)Calculated as sales less jobber sales, divided by weighted-average square footage. Weighted-average square footage is determined by weighting store square footage based on the approximate dates of store openings, acquisitions, expansions, or closures.(6)Calculated as sales less jobber sales, divided by weighted-average stores. Weighted-average stores is determined by weighting stores based on their approximate dates of openings, acquisitions, or closures.

O'Reilly Automotive (ORLY - Free Report) came out with quarterly earnings of $0.72 per share, beating the Zacks Consensus Estimate of $0.69 per share. This compares to earnings of $0.62 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +4.18%. A quarter ago, it was expected that this auto parts retailer would post earnings of $0.72 per share when it actually produced earnings of $0.71, delivering a surprise of -1.39%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

O'Reilly Automotive, which belongs to the Zacks Automotive - Retail and Wholesale - Parts industry, posted revenues of $4.56 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 2.10%. This compares to year-ago revenues of $4.14 billion. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

O'Reilly Automotive shares have added about 0.4% since the beginning of the year versus the S&P 500's gain of 4.3%.

What's Next for O'Reilly Automotive?While O'Reilly Automotive has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for O'Reilly Automotive was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.94 on $4.83 billion in revenues for the coming quarter and $3.23 on $18.93 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Retail and Wholesale - Parts is currently in the bottom 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Advance Auto Parts (AAP - Free Report) , is yet to report results for the quarter ended March 2026.

This auto parts retailer is expected to post quarterly earnings of $0.40 per share in its upcoming report, which represents a year-over-year change of +281.8%. The consensus EPS estimate for the quarter has been revised 1.1% lower over the last 30 days to the current level.

Advance Auto Parts' revenues are expected to be $2.56 billion, down 0.7% from the year-ago quarter.

Key Takeaways ORLY beat Q1 EPS and revenue estimates, with earnings and sales rising year over year.Strong demand drove 8.1% comp sales growth across professional and DIY segments.Margins improved as cost control and higher sales boosted profit and cash flow. O’Reilly Automotive, Inc. (ORLY - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of 72 cents, which beat the Zacks Consensus Estimate of 69 cents by 4.18%. The bottom line increased from 62 cents in the prior-year quarter.

The automotive parts retailer registered quarterly revenues of $4.56 billion, which surpassed the Zacks Consensus Estimate of $4.47 billion by 2.1%. The top line also rose 10.2% year over year.

The quarter was driven by strong demand, with comparable store sales rising 8.1%. Growth in both the professional and DIY segments, along with careful cost control, supported the overall performance. The company opened 59 stores in the United States, Mexico and Canada in the first quarter. The total store count was 6,644 as of March 31, 2026.

ORLY’s Sales Mix Highlights Professional MomentumA key feature of the quarter was the continued weight of the professional service provider channel. Sales to professional customers were $2.29 billion, up from $2 billion a year ago, reflecting meaningful growth in the company’s higher-frequency commercial business.

Do-it-yourself demand also contributed, with DIY sales of $2.19 billion versus $2.05 billion in the prior-year quarter. Other sales and adjustments were $79.6 million compared with $86.5 million last year, leaving the mix largely driven by the two core customer groups.

O’Reilly Expands Profit Dollars as Sales ScaleO’Reilly translated the higher sales base into improved profit dollars. Gross profit increased to $2.35 billion, and gross margin held firm at 51.5% of sales versus 51.3% a year ago, indicating pricing and sourcing discipline despite a rising cost environment.

Expense growth remained controlled relative to sales. Selling, general and administrative costs rose to $1.51 billion, but declined to 33% of sales from 33.4% last year. Operating income climbed to $841.6 million, with operating margin improving to 18.5% from 17.9%, underscoring a focus on productivity and prudent expense management.

ORLY Converts Earnings Into Cash and Share ReductionCash generation was a standout. Net cash provided by operating activities was $1.03 billion in the quarter, up from $755.1 million in the year-ago period, supported by higher earnings and favorable working-capital movements.

This strong cash generation supported an aggressive capital return program. Capital expenditures were $244.4 million, and free cash flow totaled $785.1 million. ORLY repurchased 10 million shares for $923 million at an average price of $92.45 in the first quarter. From the end of the first quarter until April 29, 2026, it bought an additional 3.6 million shares for $338 million at an average price of $92.83.

O’Reilly’s Balance Sheet Reflects Inventory InvestmentAs of March 31, 2026, O’Reilly’s cash and cash equivalents totaled $252.6 million, up from $191.2 million a year earlier. Inventory rose to $5.81 billion from $5.17 billion, reflecting a larger store base and the need to support high service levels across both customer segments.

On the funding side, as of March 31, 2026, long-term debt rose to $6.2 billion from $5.65 billion a year ago. Accounts payable increased to $7.24 billion from $6.54 billion, mainly reflecting higher inventory levels. Overall, total assets grew to $16.94 billion from $15.29 billion in the same period last year.

ORLY Lifts 2026 Outlook Across Key Operating TargetsThe company maintained its full-year outlook, with total revenues expected between $18.7 billion and $19 billion. Gross margin is projected in the range of 51.5-52%. The effective tax rate is expected to be 22.6%.

It continues to expect 225-235 new store openings and comparable store sales growth of 3-5%. Cash flow guidance remains unchanged, with operating cash flow of $3.1-$3.5 billion, capital spending of $1.3-$1.4 billion, and free cash flow of $1.8-$2.1 billion.

The company now expects operating margin to be in the range of 19.3-19.8%, up slightly from the previous outlook of 19.2-19.7%. Diluted earnings per share are projected between $3.15 and $3.25 compared with the earlier guidance of $3.10-$3.20.

ORLY currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Releases From Auto SpaceAutoliv, Inc. (ALV - Free Report) reported first-quarter 2026 results on April 17. It posted adjusted earnings of $2.05 per share, which declined 4.7% year over year but surpassed the Zacks Consensus Estimate of $1.77 by 15.8%. Net sales were $2.75 billion, up 6.8% from the year-ago quarter and above the Zacks Consensus Estimate of $2.63 billion by 4.52%.

Autoliv ended the quarter with cash and cash equivalents of $342 million compared with $322 million a year earlier. Long-term debt was $1.7 billion compared with $1.56 billion in the year- ago period. Shareholder returns continued through dividends. Autoliv paid a cash dividend of 87 cents per share in the quarter, with total dividend payments of $65 million.

Genuine Parts Company (GPC - Free Report)  reported its first-quarter 2026 results on April 21. It posted adjusted earnings of $1.77 per share, which missed the Zacks Consensus Estimate of $1.81 by 1.94%. The bottom line improved 1.1% from the year-ago quarter’s adjusted earnings of $1.75 per share. The company posted revenues of $6.27 billion, which beat the Zacks Consensus Estimate of $6.17 billion by 1.5% and increased 6.8% year over year. The performance was driven by solid sales growth across business segments and a 20-basis-point improvement in gross margin to 37.3%.

GPC’s total liquidity was $1.3 billion as of March 31, 2026, including $500 million in cash and $838 million of revolver capacity. During the quarter, GPC invested $98 million in capex and $14 million in acquisitions while returning $142 million to shareholders via dividends. For 2026, the company targets $450-$500 million in capex and $300-$350 million in M&A, with approximately 7.5 million shares remaining under its repurchase authorization.

Comparable Store Sales Growth: 8.1% increase, surpassing expectations.Total Sales Growth: 10.2% increase for the first quarter of 2026.Operating Profit: 14% in

On May 13, 2026, we delve into the discounted cash flow (DCF) analysis for O'Reilly Automotive Inc (ORLY). The company has experienced a slight decline in its s

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.

That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.

However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.

Our proprietary system currently recommends O'Reilly Automotive (ORLY - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.

While there are numerous reasons why the stock of this auto parts retailer is a great growth pick right now, we have highlighted three of the most important factors below:

Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for O'Reilly Automotive is 10.5%, investors should actually focus on the projected growth. The company's EPS is expected to grow 9.2% this year, crushing the industry average, which calls for EPS growth of 4%.

Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.

Right now, year-over-year cash flow growth for O'Reilly Automotive is 6.1%, which is higher than many of its peers. In fact, the rate compares to the industry average of 5.6%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 8.1% over the past 3-5 years versus the industry average of 4.1%.

Promising Earnings Estimate RevisionsBeyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The current-year earnings estimates for O'Reilly Automotive have been revising upward. The Zacks Consensus Estimate for the current year has surged 0.5% over the past month.

Bottom LineWhile the overall earnings estimate revisions have made O'Reilly Automotive a Zacks Rank #2 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination indicates that O'Reilly Automotive is a potential outperformer and a solid choice for growth investors.

It has been about a month since the last earnings report for O'Reilly Automotive (ORLY - Free Report) . Shares have lost about 10.2% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is O'Reilly Automotive due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

O'Reilly Q1 Earnings Surpass Estimates on Strong Comps GrowthO’Reilly reported first-quarter 2026 adjusted earnings per share (EPS) of 72 cents, which beat the Zacks Consensus Estimate of 69 cents by 4.18%. The bottom line increased from 62 cents in the prior-year quarter.

The automotive parts retailer registered quarterly revenues of $4.56 billion, which surpassed the Zacks Consensus Estimate of $4.47 billion by 2.1%. The top line also rose 10.2% year over year.

The quarter was driven by strong demand, with comparable store sales rising 8.1%. Growth in both the professional and DIY segments, along with careful cost control, supported the overall performance. The company opened 59 stores in the United States, Mexico and Canada in the first quarter. The total store count was 6,644 as of March 31, 2026.

ORLY’s Sales Mix Highlights Professional MomentumA key feature of the quarter was the continued weight of the professional service provider channel. Sales to professional customers were $2.29 billion, up from $2 billion a year ago, reflecting meaningful growth in the company’s higher-frequency commercial business.

Do-it-yourself demand also contributed, with DIY sales of $2.19 billion versus $2.05 billion in the prior-year quarter. Other sales and adjustments were $79.6 million compared with $86.5 million last year, leaving the mix largely driven by the two core customer groups.

O’Reilly Expands Profit Dollars as Sales ScaleO’Reilly translated the higher sales base into improved profit dollars. Gross profit increased to $2.35 billion, and gross margin held firm at 51.5% of sales versus 51.3% a year ago, indicating pricing and sourcing discipline despite a rising cost environment.

Expense growth remained controlled relative to sales. Selling, general and administrative costs rose to $1.51 billion, but declined to 33% of sales from 33.4% last year. Operating income climbed to $841.6 million, with operating margin improving to 18.5% from 17.9%, underscoring a focus on productivity and prudent expense management.

ORLY Converts Earnings Into Cash and Share ReductionCash generation was a standout. Net cash provided by operating activities was $1.03 billion in the quarter, up from $755.1 million in the year-ago period, supported by higher earnings and favorable working-capital movements.

This strong cash generation supported an aggressive capital return program. Capital expenditures were $244.4 million, and free cash flow totaled $785.1 million. ORLY repurchased 10 million shares for $923 million at an average price of $92.45 in the first quarter. From the end of the first quarter until April 29, 2026, it bought an additional 3.6 million shares for $338 million at an average price of $92.83.

O’Reilly’s Balance Sheet Reflects Inventory InvestmentAs of March 31, 2026, O’Reilly’s cash and cash equivalents totaled $252.6 million, up from $191.2 million a year earlier. Inventory rose to $5.81 billion from $5.17 billion, reflecting a larger store base and the need to support high service levels across both customer segments.

On the funding side, as of March 31, 2026, long-term debt rose to $6.2 billion from $5.65 billion a year ago. Accounts payable increased to $7.24 billion from $6.54 billion, mainly reflecting higher inventory levels. Overall, total assets grew to $16.94 billion from $15.29 billion in the same period last year.

ORLY Lifts 2026 Outlook Across Key Operating TargetsThe company maintained its full-year outlook, with total revenues expected between $18.7 billion and $19 billion. Gross margin is projected in the range of 51.5-52%. The effective tax rate is expected to be 22.6%.

It continues to expect 225-235 new store openings and comparable store sales growth of 3-5%. Cash flow guidance remains unchanged, with operating cash flow of $3.1-$3.5 billion, capital spending of $1.3-$1.4 billion, and free cash flow of $1.8-$2.1 billion.

The company now expects operating margin to be in the range of 19.3-19.8%, up slightly from the previous outlook of 19.2-19.7%. Diluted earnings per share are projected between $3.15 and $3.25 compared with the earlier guidance of $3.10-$3.20.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted -8.66% due to these changes.

VGM ScoresAt this time, O'Reilly Automotive has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. It comes with little surprise O'Reilly Automotive has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

On June 10, 2026, we delve into the DCF analysis for O'Reilly Automotive Inc (ORLY), a company that has shown mixed price performance recently. Over the past we