O'Reilly Automotive (ORLY -0.27%) continues to be a big winner for investors. Its shares trade up about 33% so far in 2025 (as of Sept. 10), and since the company reported second-quarter 2025 financial results on July 23, they have climbed 10.2%. The momentum isn't letting up.
The market is clearly happy with O'Reilly's latest financial update. Among all the data points, there's one thing that I can't stop thinking about.
Image source: Getty Images.
O'Reilly has an incredible streak going
O'Reilly reported revenue and diluted earnings-per-share growth of 6% and 11%, respectively, during the second quarter (ended June 30). These figures exhibited solid gains, and the headline numbers keep driving investor enthusiasm.
However, it's same-store sales (SSS) that investors should be focused on. In Q2, O'Reilly registered SSS growth of 4.1%. This follows a 3.6% gain in the first quarter. On the surface, these aren't jaw-dropping metrics.
If we zoom out, though, it's an impressive track record. Last year, in 2024, the business posted a 2.9% increase. This was the 32nd straight year of positive SSS growth for O'Reilly. The company is on track to make 2025 the 33rd consecutive year that an SSS gain was reported. This is an indicator of durable demand.
Boring is beautiful
O'Reilly isn't topping any lists when it comes to most exciting businesses. But that's perfectly fine for shareholders. In the past decade, the retail stock has generated a total return of 570%. Consistent growth has been the name of the game.
Even better, the management team uses the company's free cash flow to aggressively repurchase shares. Just in the past 12 months, the outstanding share count shrank by 3%, which helps boost EPS.
While the stock could keep climbing in the years ahead, it's evident that the valuation has gotten stretched. Shares trade at a price-to-earnings ratio of 38.2, their most expensive in at least the past two decades.
