ORLY Should I Buy
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O'Reilly Automotive Inc (ORLY) is not a strong buy at the moment for a beginner investor with a long-term horizon. The technical indicators are neutral to bearish, and while the company has shown solid financial performance in the latest quarter, the stock lacks clear positive momentum or strong buy signals. Furthermore, analysts have recently lowered price targets, and there are no significant catalysts or influential trades to justify an immediate investment.
The stock shows bearish moving averages (SMA_200 > SMA_20 > SMA_5), a negative MACD histogram (-0.515), and a neutral RSI (49.767). The stock is trading near its pivot level of 95.178, with resistance at 98.291 and support at 92.064. Overall, the technical indicators suggest a neutral to bearish trend.
Hedge funds are increasing their holdings, with a 150.33% increase in buying activity last quarter. The company reported strong financial growth in Q4 2025, with revenue up 7.78% YoY, net income up 9.82% YoY, and EPS up 12.70% YoY.
Analysts have recently lowered price targets due to concerns about elevated costs and self-insurance pressures. Insider trading activity is neutral, and there are no significant congress trades or news-driven catalysts specific to ORLY. Technical indicators are not supportive of a strong upward trend.
In Q4 2025, the company delivered solid financial results: Revenue increased by 7.78% YoY to $4.41 billion, net income rose 9.82% YoY to $605.23 million, EPS grew 12.70% YoY to 0.71, and gross margin improved by 0.96% YoY to 51.79%.
Analysts maintain a generally positive view with Buy and Overweight ratings, but recent price target reductions (e.g., Morgan Stanley to $108, Citi to $110) reflect concerns about cost pressures and operational expenses. One downgrade to Neutral (Baird) highlights cautious sentiment.
