Is O'Reilly Automotive Stock Underperforming the Dow?

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 $80.2 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 12.6% from its 52-week high of $108.72, achieved on Sep. 30, 2025. Over the past three months, ORLY stock declined 4.8%, underperforming the Dow Jones Industrials Average’s ($DOWI) 3% gains during the same time frame.

Shares of ORLY rose 4.2% on a YTD basis, outperforming DOWI’s YTD gains of 1.8%. However, in the longer term, the stock climbed 3.8% over the past 52 weeks, underperforming DOWI’s 11.6% returns over the last year.

To confirm the bullish trend, ORLY is trading above its 50-day moving average since late January, experiencing some fluctuations. However, the stock has been trading below its 200-day moving average since early December, 2025, with some fluctuations. 

ORLY's underperformance is due to rising self-insurance and healthcare costs, and cautious consumer behavior pressuring the DIY segment, with stable pricing but persistent cost inflation driving higher SG&A expenses and impacting profitability.

On Feb. 4, ORLY reported its Q4 results, and its shares closed down more than 4% in the following trading session. Its EPS of $0.71 missed Wall Street expectations of $0.72. The company’s revenue was $4.41 billion, exceeding Wall Street forecasts of $4.40 billion. ORLY expects full-year EPS to be $3.10 to $3.20, 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 14.5% gain on a YTD basis and 11.2% returns 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 $108.04 suggests a potential upside of 13.7% from current price levels.