Top 10 Stocks to Buy According to Akre Capital Management

5. O’Reilly Automotive, Inc. (NASDAQ:ORLY)

Number of Hedge Fund Holders as of Q4: 63

Akre Capital Management’s Equity Stake: $1.06 Billion 

O’Reilly Automotive, Inc. (NASDAQ:ORLY), commonly known as O’Reilly Auto Parts, is a leading American retailer of automotive aftermarket parts, tools, and accessories. Founded in 1957 by the O’Reilly family, the company has expanded its operations to over 6,000 stores across 48 states, Puerto Rico, and Mexico.

For the fourth quarter ending December 31, 2024, O’Reilly Automotive, Inc. (NASDAQ:ORLY)’s revenue increased by 7% to $4.10 billion, compared to $3.83 billion in the previous year. Gross profit also rose by 7% to $2.10 billion, maintaining a steady margin of 51.3%. However, selling, general, and administrative (SG&A) expenses climbed by 9%, totaling $1.36 billion. Operating income increased modestly by 3% to $739 million, while net income experienced a slight decline of $1 million, settling at $551 million. Despite this, diluted earnings per share (EPS) grew by 3% to $9.50, driven by a reduction in outstanding shares. The company’s consistent financial strength continues to support its long-term growth strategy.

In a significant corporate move, O’Reilly Automotive, Inc. (NASDAQ:ORLY)  announced on March 13 that its Board of Directors approved a 15-for-1 stock split, which will be executed as a special stock dividend. The split is contingent on shareholder approval of an amendment to increase the number of authorized shares. This decision reflects O’Reilly’s commitment to broadening stock accessibility for investors and employees. CEO Brad Beckham emphasized that the stock split aligns with the company’s long-standing tradition of rewarding its team members, reinforcing the culture that has been integral to O’Reilly’s sustained success.

If approved, shareholders of record as of June 2, 2025, will receive 14 additional shares for each share held, with distribution set for June 9. The move aims to make shares more accessible to O’Reilly Automotive, Inc. (NASDAQ:ORLY)’s employees through its stock purchase program, which offers stock at a 15% discount via payroll deductions. The company believes this initiative will further strengthen employee engagement and align their interests with O’Reilly’s continued growth.