O'Reilly Automotive stock slides 19% in seven months
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- O'Reilly Automotive shares have fallen 19% over the past seven months, despite a 174% gain over the prior five years.
- O'Reilly Automotive reported a 4.7% same‑store sales increase in 2025, its 33rd straight year of positive comparables.
- O'Reilly Automotive added 207 stores in 2025 and plans to open 225‑235 new locations in 2026.
- O'Reilly Automotive spent $7.4 billion on stock buybacks over the last three years, roughly 10% of its market cap.
- O'Reilly Automotive's price‑to‑earnings ratio fell to 29.5 after the recent dip, down from a high of 38.6 and above its five‑year average of 26.6.
- O'Reilly Automotive's revenue and net income have grown at compound annual rates of 8.3% and 10.8% respectively from 2015‑2025.
Why it matters: Investors who favor dividend‑paying, cash‑rich retailers gain a cheaper entry point as the P/E falls toward 30, while shareholders who bought near the all‑time high see a 19% market‑value loss; the dip also tests whether the premium valuation is justified given the company’s consistent sales growth and aggressive store rollout.
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