Can $10,000 in O'Reilly Automotive Stock Turn Into $61,917 by 2035?

So, you're interested in O'Reilly Automotive (ORLY 0.16%) stock. Who could blame you? It's been a terrific performer for many years, making lots of shareholders richer. You might be wondering whether it could make you richer, too.

Well, it might, but there are a few issues to consider.

For starters, let's review the stock's recent performance over time:

Data source: Morningstar.com as of July 29, 2025.

I posed the question of whether you could turn $10,000 into $61,917 in a decade with O'Reilly stock because that's what would happen with average annual gains of 20%. Looking at the table above, you might think that achieving 20% average gains will be easy. That's not necessarily true, though -- because the stock's price seems a bit overheated at recent levels -- without much margin of safety.

Image source: Getty Images.

If the shares were undervalued, aiming for 20% gains would seem more reasonable. But if the shares are overvalued, then they've gotten ahead of themselves and may well pull back before advancing again.

Consider these measures: O'Reilly's recent forward-looking price-to-earnings (P/E) ratio of 33.4 is well above its five-year average of 23.2. And its recent price-to-sales ratio of 5.0 is well above its five-year average of 3.7.

Given all that, I won't be buying shares anytime soon. But the stock is worth adding to your watchlist in the hope of a better, lower price. It has many points in its favor. For one thing, its business is recession-resistant, should a recession rear its ugly head. When people's cars have issues, they will simply need to buy parts and supplies. And the average age of cars in America has increased recently.

O'Reilly Automotive is growing well, too, posting revenue and earnings increases of 6% and 11%, respectively, in its solid second quarter. Growth investors might keep an eye on O'Reilly, but income investors should look elsewhere, as it doesn't yet pay a dividend.