O’Reilly Automotive Stock: Can $10,000 Turn Into $61,917 by 2035?
O'Reilly Automotive (ORLY) has been a standout performer in the stock market, delivering impressive average annual gains of 28.23% over the past three years and 25.53% over the past 15 years. However, the stock's current valuation metrics suggest caution. With a forward P/E ratio of 33.4—well above its five-year average of 23.2—and a price-to-sales ratio of 5.0 compared to its historical 3.7, the shares appear overextended.
While historical performance might tempt investors to project 20% annual returns, the lack of a margin of safety at current levels raises questions about sustainability. Market conditions and valuation multiples will play a critical role in determining whether ORLY can replicate its past success.