We recently published a list of 15 Highest-Priced Stocks Right Now. In this article, we are going to take a look at where O’Reilly Automotive, Inc. (NASDAQ:ORLY) stands against other highest-priced stocks right now.
2024 was a blockbuster year for the US markets, with the broad market index up 23.31% during the year, after rising 24.2% in the year prior. The two-year gain of 53% is the best performance for the index since the 66% rally between 1997 and 1998.
READ ALSO: 10 Best Single Digit Stocks To Buy Now and 12 Best S&P 500 Stocks to Invest in According to Analysts.
The market benefited from declining interest rates, waning inflation, and a resilient economy that avoided recession. While analysts have projected continued growth in 2025, they are also cautious about the rally having gone too far with a correction in the offing this year. Fears of fierce trade wars and geopolitical conflicts could also hurt the stock market.
Over the past few weeks, President Trump has announced and then delayed tariffs on Canada and Mexico, imposed additional 10% tariffs on Chinese goods, and warned the European Union of similar treatment, citing the bloc’s treatment of the U.S. The new administration’s protectionist policies have sparked concerns in the markets about which countries will be next on the American president’s list, leaving several large multinationals unsure of how to plan.
According to analysts at Goldman Sachs Research, index earnings could drop by 2-3% if the US goes ahead with its proposed tariffs. Financial markets have been turbulent amid ongoing tariff negotiations between Washington and its major trade partners. Here is what chief equity strategist, David Kostin, wrote in a recent report.
“If company managements decide to absorb the higher input costs, then profit margins would be squeezed. If companies pass along the higher costs to end customers, then sales volumes may suffer. Firms may try to push back on their suppliers and ask them to absorb part of the cost of the tariff through lower prices.”
Analysts at the investment banking firm have also warned that protectionist policies driving up the value of the U.S. Dollar could further pressure the earnings of several companies, especially those that derive a significant portion of their revenues outside the United States.
Time will tell whether the Trump administration implements the tariffs or reaches a compromise with its trade partners, and how the markets react if the export taxes are imposed. However, if past trends are anything to go by, the broad market index dropped by a total of 5% on days when the U.S., under Trump’s first stint as president, announced tariffs in 2018 and 2019. The index fell by a cumulative 7% when other countries imposed retaliatory tariffs.
Methodology
We went through screeners to identify the highest-priced stocks as of the close of the day on Friday, February 14, 2025 and ranked them in ascending order of their share price.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A mechanic working on a car in an auto shop, skillfully replacing the aftermarket parts.
O’Reilly Automotive, Inc. (NASDAQ:ORLY)
Share Price on February 14: $1,318.80
O’Reilly Automotive, Inc. (NASDAQ:ORLY) is a retailer and supplier of auto parts, tools, equipment, and other accessories for professional and do-it-yourself customers. The company operates over 6,000 stores across the United States, Puerto Rico, and Mexico.
During its Q4 2024 earnings call on February 6, O’Reilly Automotive, Inc. (NASDAQ:ORLY) reported a 2.9% increase in comparable store sales and a 5.7% uptick in diluted earnings per share during the fiscal year. Despite challenges across the automotive aftermarket, the company delivered its 32nd successive year of growth in these metrics since going public.
Analysts believe consumers are favoring repairs over acquiring new vehicles due to higher borrowing costs and increasing prices of new vehicles. Moreover, the complex nature of modern vehicles is also bolstering demand for high-quality parts. These factors are setting O’Reilly Automotive, Inc. (NASDAQ:ORLY) in good shape for future growth.
The company’s share price has had returns of nearly 26% over the past 12 months, which has resulted in ORLY being one of the highest-priced stocks right now. On February 11, Roth MKM raised the stock’s price target to $1,440 from $1,337 and maintained its Buy rating amid solid guidance for FY25.
Investor sentiment remains strong as well. According to Insider Monkey’s database for Q3 2024, 41 hedge funds held a stake in the company. Qualivian Investment Partners stated the following regarding O’Reilly Automotive, Inc. (NASDAQ:ORLY) in its Q3 2024 investor letter:
ORLY is the leader in the automotive retail parts marketplace and has out-executed the competition, especially the smaller mom and pop auto parts stores that cater to the retail and auto mechanic shops in the US. Furthermore, the historical deployment of its excess cash to repurchase its shares continues to be a key linchpin of its ability to generate shareholder returns more than the market. While we are maintaining a watchful eye on slowing market trends, we continue to see ORLY as a long-term core holding in the fund.
Overall, ORLY ranks 13th on our list of highest-priced stocks right now. While we acknowledge the potential of conglomerate holding companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ORLY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
