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O'Reilly Auto Parts - AI Stock Analysis

Analysis generated May 9, 2025

O'Reilly Auto Parts is a major retailer in the automotive aftermarket industry, offering a vast range of auto parts, tools, supplies, equipment, and accessories. The company operates more than 5,000 stores across the United States and has established a strong brand reputation for quality products and excellent customer service. Founded in 1957, the company has continuously expanded its footprint through both organic growth and strategic acquisitions.

Fundamental Analysis

Revenue for the last quarter reached $4.14 billion, marking an increase of 1.01% quarter-over-quarter and 4.04% year-over-year. This indicates steady revenue growth, a healthy signal for the company's future. However, net income for the last quarter was $538 million, which represents a decrease of 2.29% from the previous quarter and 1.60% from the same quarter last year. This decline in net income could indicate potential issues in cost management or operational efficiency.

The EBITDA for the last quarter was $741 million, reflecting a slight increase of 0.38% compared to the previous quarter but a notable decrease of 14.00% year-over-year. The year-over-year decline in EBITDA is concerning as it impacts the company's profitability. O'Reilly's current P/E ratio is 34.49, which is considered high and could indicate overvaluation of the stock. Additionally, recent insider selling is generally perceived as a bearish signal and could raise concerns among investors.

Technical Analysis

Today's stock price stands at $1,360.15, a 0.87% increase from last month and an impressive 33.44% increase from a year ago. This data suggests a positive long-term trend in the stock price. Despite this, the short-term technical indicators present a mixed picture. The current 10-day Simple Moving Average (SMA10) is $1,391.41, slightly lower than the previous SMA10 of $1,395.32, indicating a possible downward trend.

Furthermore, the Relative Strength Index (RSI) is 28.3, a figure that typically suggests the stock is oversold. This could present a bullish opportunity for investors seeking to capitalize on the stock's potential rebound.

Alternative Data Analysis

O'Reilly Auto Parts appears to be in a growth phase, as evidenced by their job market data. The company has 14,499 open positions, a 7% increase in recent months, suggesting plans for expansion. Employee sentiment about the business outlook is neutral, indicating internal stability.

In terms of customer acquisition, the company's website has seen a 17% increase in visitors, up to an estimated 19 million. This bullish trend suggests growing customer interest. However, this positive indicator is offset by a 100% drop in mobile app downloads, an alarming trend that may indicate a loss of mobile-driven customer engagement.

On social media, O'Reilly has 87,000 Instagram followers, a 4% increase recently, indicating rising brand interest. Their Twitter follower count stands at 41,000 with no significant change lately. Based on AltIndex's AI score, O'Reilly Auto Parts has a score of 45, which translates to a 'hold' signal, suggesting moderate expectations for the stock performance.

Conclusion

O'Reilly Auto Parts demonstrates robust revenue growth and strong long-term stock price performance. However, the decline in net income and EBITDA, high P/E ratio, and recent insider selling raise some concerns. Technical indicators present mixed signals, with a short-term downward trend but a potentially oversold condition suggesting a bullish opportunity.

Alternative data presents a mixed outlook: positive job growth and web traffic contrast with a decline in mobile app engagement. The AI score of 45 indicates a 'hold' signal, reflecting moderate stock expectations. Investors should carefully weigh these factors against their investment strategy and risk tolerance before making a decision.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.