So far, August hasn't been a terrific month for the overall stock market. After rising for most of the year, the benchmark S&P 500 index fell about 1.6% on Friday, Aug. 1.
Weak jobs data and increased uncertainty regarding new taxes on goods entering the U.S. caused a miniature market beatdown recently. High-flying shares of O'Reilly Automotive (ORLY 1.47%) and Genius Sports (GENI 3.19%) bucked the overall trend and continued soaring.
Both companies are likely to continue climbing, according to the Wall Street analysts who follow them. Recent price targets for both of these stocks suggest they can climb by 15% and 20%, respectively, over the next 12 months.
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1. O'Reilly Automotive
From the end of 2024 through Aug. 1, shares of O'Reilly Automotive shot 35% higher. Investment-bank analysts tasked with following the company think it can climb even further.
At Citigroup, Steven Zaccone thinks O'Reilly stock can reach new heights. On July 25, he raised his target on the stock to $114 per share. The new target implies a 15% gain over the next 12 months.
O'Reilly's auto parts business doesn't seem particularly exciting until you understand its unbeatable advantage. With over 6,000 stores across the U.S., the company's presence in America's automotive aftermarket is second only to AutoZone. Its immense size gives it favorable pricing from suppliers.
NASDAQ: ORLY
Key Data Points
In addition to economies of scale, having lots of warehouse-sized stores allows O'Reilly to distribute products faster than smaller competitors. Sales to professional mechanics, who appreciate a reliable parts supplier, rose by 7.9% year over year during the first half of 2025.
An investment of just $2,500 in this stock 30 years ago would be worth over $1 million today. Now that O'Reilly already has a leading presence in the U.S., expecting similar gains over the next few decades doesn't seem reasonable. That said, its highly advantageous position in North America's auto parts aftermarket could still produce gains for patient investors and outperform the broad market.
2. Genius Sports
If you're a sports fan, you've probably noticed your viewing experience comes with more data than it used to. Genius Sports is one of two big data providers that the world's sports betting companies and media businesses rely on. These days, just about every statistic used to entertain viewers and set sportsbooks' lines is generated by either Genius Sports or a similar company called Sportradar.
NYSE: GENI
Key Data Points
From the end of 2024 through Aug. 1, shares of Genius Sports gained 35% and could go even higher, according to Wall Street. On July 1, Truist Financial analyst Barry Jonas gave the stock a buy rating and a $14 price target. The target suggests the stock could rise 20% from its Aug. 1 closing price over the next 12 months.
By revenue, Genius Sports is a little less than half the size of Sportradar but has some important partnerships that could cement its position in the nascent sports data duopoly. In June, Genius Sports extended a deal with the National Football League (NFL) that makes it the league's exclusive distributor of real-time statistics and betting data.
A multiyear deal with the NFL will help Genius continue growing by leaps and bounds. This year, management expects sales to grow by 21%, and the company's bottom line is rising even faster than its top line.
The company's first-quarter gross profit margin more than doubled year over year to reach 24.4%. As a result, this year's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are expected to reach $125 million. That would be a 46% leap year over year.
It looks like Genius Sports has a bright future ahead, but the stock is somewhat risky. It's been trading for about 52 times forward-looking earnings expectations. If the company shows any signs of a slowdown over the next few years, investors who buy at this high valuation could suffer heavy losses.
As a member of the emerging sports data duopoly, there's a good chance Genius Sports will grow into its lofty valuation. That said, this stock is only appropriate for investors who can tolerate a lot of risk.
