O'Reilly Automotive Stock: Is ORLY Underperforming the Consumer Discretionary Sector?

O'Reilly Automotive, Inc. (ORLY), headquartered in Springfield, Missouri, is a leading retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories. Valued at $72.4 billion by market cap, the company sells its products to do-it-yourself customers, professional mechanics, and service technicians.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and ORLY perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the specialty retail industry. ORLY maintains an efficient distribution network. With over 6,000 stores in the U.S. and Mexico, O'Reilly's brand is known for quality and reliability, leading to a loyal customer base. 

Despite its notable strength, ORLY slipped 19.6% from its 52-week high of $108.72, achieved on Sep. 30, 2025. Over the past three months, ORLY stock declined 6.9%, underperforming the State Street Consumer Discretionary Select Sector SPDR ETF’s (XLY) 2.1% gains during the same time frame.

Shares of ORLY fell 4.2% on a YTD basis and dipped 4.5% over the past 52 weeks, underperforming XLY’s YTD losses of 2.2% and 8.4% returns over the last year.

To confirm the bearish trend, ORLY is trading below its 50-day moving average since early October, 2025, experiencing some fluctuations. The stock has been trading below its 200-day moving average since early December, 2025, with some fluctuations. 

On Apr. 29, ORLY reported its Q1 results, and its shares closed up more than 8% in the following trading session. Its EPS of $0.72 topped Wall Street expectations of $0.69. The company’s revenue was $4.6 billion, beating Wall Street forecasts of $4.5 billion. ORLY expects full-year EPS to be $3.15 to $3.25, and revenue in the range of $18.7 billion to $19 billion.

ORLY’s rival, AutoZone, Inc. (AZO) shares lagged behind the stock, with a 9.7% loss on a YTD basis and an 18.3% downtick over the past 52 weeks.

Wall Street analysts are bullish on ORLY’s prospects. The stock has a consensus “Strong Buy” rating from the 28 analysts covering it, and the mean price target of $111.32 suggests a potential upside of 27.4% from current price levels.