From $10K to $61K? O’Reilly Automotive Stock’s 2035 Moonshot Potential

Can a $10,000 bet on O'Reilly Automotive stock really 6x by 2035? Let's crunch the numbers—no hopium allowed.

The Bull Case: Auto Parts Never Die

America's aging vehicle fleet and DIY culture could keep O'Reilly's cash registers ringing. But 500% returns require flawless execution—and maybe some divine intervention.

The Math (Or Madness?)

Hitting $61,917 by 2035 demands ~15% annual growth for a decade. Possible? Sure. Likely? Ask the crystal ball you bought with your last 'sure thing' stock tip.

Cynic's Corner

Remember: Wall Street loves a good story... until the quarterly earnings miss by $0.02 and your 'sure bet' tanks 20% overnight.

Image source: Getty Images.

If the shares were undervalued, aiming for 20% gains would seem more reasonable. But if the shares are overvalued, then they've gotten ahead of themselves and may well pull back before advancing again.

Consider these measures: O'Reilly's recent forward-looking price-to-earnings (P/E) ratio of 33.4 is well above its five-year average of 23.2. And its recent price-to-sales ratio of 5.0 is well above its five-year average of 3.7.

Given all that, I won't be buying shares anytime soon. But the stock is worth adding to your watchlist in the hope of a better, lower price. It has many points in its favor. For one thing, its business is recession-resistant, should a recession rear its ugly head. When people's cars have issues, they will simply need to buy parts and supplies. And the average age of cars in America has increased recently.

O'Reilly Automotive is growing well, too, posting revenue and earnings increases of 6% and 11%, respectively, in its solid second quarter. Growth investors might keep an eye on O'Reilly, but income investors should look elsewhere, as it doesn't yet pay a dividend.