O'Reilly Automotive Inc

ORLY: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$725.00	Mxcl	Kdfhgnsz

Shifting Consumer Behavior Hits O’Reilly’s DIY Unit in the Second Quarter; Long-Term Outlook Intact

Zain Akbari

Jul 28, 2022

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.

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