Tariffs Aren't O'Reilly's Biggest Problem, This Is
O'Reilly Automotive (NASDAQ: ORLY) is a fast-growing auto parts retailer. The stock is fast-growing as well, and its price is up over 41% over the past 12 months, trouncing the 13% or so gain of the S&P 500 over that span. With a price-to-earnings ratio of 33x, investors clearly have high expectations for the business.However, there's a problem that needs monitoring, and it isn't tariffs.As noted, O'Reilly Automotive is an auto parts retailer. It sells parts to both the professional and the public. The key fact here, however, is that it is a retailer. This has implications for its business in multiple ways.Continue reading
O'Reilly Automotive (NASDAQ: ORLY) is a fast-growing auto parts retailer. The stock is fast-growing as well, and its price is up over 41% over the past 12 months, trouncing the 13% or so gain of the S&P 500 over that span. With a price-to-earnings ratio of 33x, investors clearly have high expectations for the business.
However, there's a problem that needs monitoring, and it isn't tariffs.
As noted, O'Reilly Automotive is an auto parts retailer. It sells parts to both the professional and the public. The key fact here, however, is that it is a retailer. This has implications for its business in multiple ways.
