O'Reilly Automotive Inc
ORLY: XNAS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$787.00 | Vbqq | Xhkzdvwbm |
Shifting Consumer Behavior Hits O’Reilly’s DIY Unit in the Second Quarter; Long-Term Outlook Intact
Our $580 per share valuation of narrow-moat O’Reilly should not change much after it announced second-quarter earnings, with somewhat lackluster performance (particularly in its DIY unit) offset by the time value of money. Our long-term forecast still incorporates mid-single-digit percentage top-line growth and low-20s adjusted operating margins. We suggest investors await a more attractive entry point.