O'Reilly Auto Parts vs AutoZone
O'Reilly Auto Parts and AutoZone are the two dominant forces in U.S. retail auto parts, competing for the same do-it-yourself and professional installer customers across thousands of stores. Both execute relentlessly on inventory availability, same-day delivery, and share repurchases that have compounded shareholder returns for decades. The O'Reilly Auto Parts vs AutoZone comparison gets into store economics, free cash flow conversion, and which operator has the edge in the commercial customer segment that's driving the industry's next leg of growth.
O'Reilly Auto Parts and AutoZone are the two dominant forces in U.S. retail auto parts, competing for the same do-it-yourself and professional installer customers across thousands of stores. Both exec...
Why It's Moving
ORLY Eyes Strong 2026 Growth as Analysts Rally Behind 19% Upside Potential
- Analysts forecast average 2026 EPS growth of 11.4%, with highs reaching 19.4%, underscoring expectations for accelerated earnings amid steady demand for parts.
- Consensus price targets cluster around $111, implying over 20% upside from recent levels, driven by market share gains and consistent shareholder returns.
- Strong profitability persists with gross margins over 51%, positioning ORLY to capitalize on any auto sector rebound despite recent revenue softness.
AutoZone Attracts Bullish Analyst Consensus on Upside Potential Amid Technical Recovery
- 25 of 27 tracked analysts rate AZO a Moderate Buy with an average 12-month price target of $4,228-$4,519, implying 16-21% upside from current trading levels and potential for new all-time highs
- Recent price pullbacks are viewed as natural corrections within a bullish trend, with technical support near the 30-day moving average expected to hold and trigger a rebound before year-end 2026
- Analyst sentiment emphasizes the stock's uptrend resilience, with high-end forecasts reaching $4,900, though some risk remains that prolonged consolidation could extend range-bound trading into mid-2026
ORLY Eyes Strong 2026 Growth as Analysts Rally Behind 19% Upside Potential
- Analysts forecast average 2026 EPS growth of 11.4%, with highs reaching 19.4%, underscoring expectations for accelerated earnings amid steady demand for parts.
- Consensus price targets cluster around $111, implying over 20% upside from recent levels, driven by market share gains and consistent shareholder returns.
- Strong profitability persists with gross margins over 51%, positioning ORLY to capitalize on any auto sector rebound despite recent revenue softness.
AutoZone Attracts Bullish Analyst Consensus on Upside Potential Amid Technical Recovery
- 25 of 27 tracked analysts rate AZO a Moderate Buy with an average 12-month price target of $4,228-$4,519, implying 16-21% upside from current trading levels and potential for new all-time highs
- Recent price pullbacks are viewed as natural corrections within a bullish trend, with technical support near the 30-day moving average expected to hold and trigger a rebound before year-end 2026
- Analyst sentiment emphasizes the stock's uptrend resilience, with high-end forecasts reaching $4,900, though some risk remains that prolonged consolidation could extend range-bound trading into mid-2026
Investment Analysis
Pros
- O'Reilly Auto Parts has shown consistent earnings growth, reporting a 4% increase in the current year with an average annual growth rate of 6% over the past five years.
- The company maintains a broad product offering including new and remanufactured automotive hard parts, appealing to both professional installers and DIY customers.
- Employee and customer sentiment ratings are relatively strong, with competitive CEO and culture ratings compared to peers.
Considerations
- Inventory availability issues have been noted, with some customers reporting the need to wait for parts to be ordered, potentially impacting service speed.
- Despite steady growth, stock price movements have been relatively quiet recently, suggesting limited near-term catalysts driving significant investor interest.
- Competition from other auto parts retailers with strong private label brands and pricing strategies may pressure O'Reilly's market position.
AutoZone
AZO
Pros
- AutoZone has differentiated itself through competitive pricing and a well-known private label brand, Duralast, which supports customer loyalty.
- The company has a reputation for a cleaner, more organized store experience, which attracts a loyal customer base.
- AutoZone benefits from focused retail execution, leveraging its founder's background to enhance store-level operations and customer satisfaction.
Considerations
- Employee and customer sentiment ratings are lower compared to O'Reilly Auto Parts, indicating potential challenges in culture or service perception.
- Product quality concerns with some private label parts have been reported, which may affect customer trust and repeat business.
- AutoZone faces strong competitive pressure from retailers like O'Reilly who balance professional and DIY customer segments more evenly.
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O'Reilly Auto Parts (ORLY) Next Earnings Date
O'Reilly Automotive's next earnings report for the first quarter of 2026 is expected between April 21-29, 2026, with sources indicating dates around April 22-28. The company typically releases earnings in the afternoon Eastern time, followed by a conference call the next morning. This will mark the first quarterly earnings announcement following the February 4, 2026 release of fourth-quarter 2025 results. Investors should monitor the company's investor relations website for the official announcement confirming the exact release date and time.
AutoZone (AZO) Next Earnings Date
AutoZone's next earnings date is estimated between May 21 and May 26, 2026, following the company's historical pattern after its most recent Q2 report on March 3, 2026. This release will cover the fiscal third quarter (Q3) ending May 2026. The exact date remains unannounced by the company.
O'Reilly Auto Parts (ORLY) Next Earnings Date
O'Reilly Automotive's next earnings report for the first quarter of 2026 is expected between April 21-29, 2026, with sources indicating dates around April 22-28. The company typically releases earnings in the afternoon Eastern time, followed by a conference call the next morning. This will mark the first quarterly earnings announcement following the February 4, 2026 release of fourth-quarter 2025 results. Investors should monitor the company's investor relations website for the official announcement confirming the exact release date and time.
AutoZone (AZO) Next Earnings Date
AutoZone's next earnings date is estimated between May 21 and May 26, 2026, following the company's historical pattern after its most recent Q2 report on March 3, 2026. This release will cover the fiscal third quarter (Q3) ending May 2026. The exact date remains unannounced by the company.
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Published: May 14, 2025
Explore BasketWhich Baskets Do They Appear In?
Automotive
Find a car stock to fuel your investment strategy 🏎. This collection brings together carefully selected automotive companies, from traditional manufacturers to electric vehicle pioneers, curated by professional analysts to help you navigate this transformative industry.
Published: May 14, 2025
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