Shares of leading automotive parts retailer O'Reilly Automotive (ORLY -0.49%) rose 4% as of 2 p.m. E.T. Thursday, according to data provided by S&P Global Market Intelligence.
O'Reilly reported second-quarter earnings yesterday that saw earnings per share surpass expectations, while sales just missed the mark.
However, management raised same-store sales growth guidance from 3% to 3.75% at the midpoint for 2025, prompting a positive market reaction.
O'Reilly's 6,483 stores (and counting)
O'Reilly continues to prove that it is one of the best compounders available on the market, growing sales and earnings per share by 6% and 11%, respectively, in Q2.
While it is no longer a hypergrowth stock, O'Reilly still offers investors a promising growth story, even with its current total of 6,483 stores.
Image source: Getty Images.
So far, in 2025, the company has opened 105 new stores across 34 U.S. states and Mexico. Now 100 stores strong in Mexico (up from 69 this time last year), O'Reilly is launching full speed ahead in the region.
With the average vehicle in Mexico nearly four years older than its U.S. counterparts, growth in the country could prove particularly profitable for O'Reilly.
While these international expansion plans are intriguing, the company still has ample room for growth domestically as well. For instance, O'Reilly opened a new distribution center in Stafford, Virginia, which gives it the potential to add 350 stores in the region.
With no stores in Delaware and New Jersey -- and only 48 in Pennsylvania, 47 in New York, and three in Maryland (as of 2024) -- the company has immense potential to continue expanding in the Northeast.
So is O'Reilly a buy?
As much as I like O'Reilly, it now trades at a lofty 36 times earnings and would be a better buy for investors willing to hold for a decade or beyond.
