O'Reilly Auto Parts vs Cummins
This page compares O'Reilly Auto Parts and Cummins, examining their business models, financial performance, and market context in a neutral, accessible way. It presents background, strategy, and industry context to help readers understand how these companies operate and compete. Educational content, not financial advice.
This page compares O'Reilly Auto Parts and Cummins, examining their business models, financial performance, and market context in a neutral, accessible way. It presents background, strategy, and indus...
Why It's Moving
O'Reilly Automotive Targets 225-235 New Stores in 2026 Amid Analyst Optimism for 14% Upside
- O'Reilly projects opening 225-235 new stores in 2026 and expects revenues between $18.7-$19 billion, representing growth from $17.8 billion in 2025, as comparable sales momentum accelerates
- Wall Street consensus shows 23 Buy ratings versus just 1 Sell, with the median $108 price target implying 14% upside from current levels, though fair value estimates suggest the stock could be undervalued by as much as 12%
- The company is increasing average inventory per store by 5% and diversifying sourcing away from Chinese products to mitigate tariff pressures, signaling management confidence in sustaining margins despite wage and occupancy cost headwinds
CMI Stock Warning: Why Analysts See -9% Downside Risk
- Short interest spiked recently, reflecting growing bearish bets on further price declines amid valuation worries.
- China joint venture revenues dropped sharply due to soft heavy-duty truck demand, pressuring overall performance.
- Insider sale in late February adds to perceptions of overvaluation, even as analysts hold mostly buy ratings.
O'Reilly Automotive Targets 225-235 New Stores in 2026 Amid Analyst Optimism for 14% Upside
- O'Reilly projects opening 225-235 new stores in 2026 and expects revenues between $18.7-$19 billion, representing growth from $17.8 billion in 2025, as comparable sales momentum accelerates
- Wall Street consensus shows 23 Buy ratings versus just 1 Sell, with the median $108 price target implying 14% upside from current levels, though fair value estimates suggest the stock could be undervalued by as much as 12%
- The company is increasing average inventory per store by 5% and diversifying sourcing away from Chinese products to mitigate tariff pressures, signaling management confidence in sustaining margins despite wage and occupancy cost headwinds
CMI Stock Warning: Why Analysts See -9% Downside Risk
- Short interest spiked recently, reflecting growing bearish bets on further price declines amid valuation worries.
- China joint venture revenues dropped sharply due to soft heavy-duty truck demand, pressuring overall performance.
- Insider sale in late February adds to perceptions of overvaluation, even as analysts hold mostly buy ratings.
Investment Analysis
Pros
- O'Reilly Automotive has demonstrated strong revenue growth with consensus sales estimates projecting a 5.63% increase in 2025, continuing a multi-year growth trend.
- The company exhibits solid profitability with recent quarterly earnings surpassing analyst estimates and a robust net income figure of around $2.48 billion.
- O'Reilly maintains a resilient market position with substantial geographic reach across the US, Mexico, Canada, and Puerto Rico, supported by a diverse product portfolio.
Considerations
- Valuation metrics indicate O'Reilly may be overvalued, with discounted cash flow suggesting a 51% overvaluation and a high PE ratio over 33.
- Despite revenue growth, a recent negative return on equity raises concerns about capital efficiency and longer-term profitability.
- Recent insider selling and a moderate growth outlook with relatively modest EPS forecasts suggest caution about future upside potential.
Cummins
CMI
Pros
- Cummins benefits from a diversified product line in engines, power generation, and clean technologies, supporting stable demand across various markets.
- The company’s strong R&D focus and early adoption of clean energy and electrification solutions position it for long-term growth amid regulatory shifts.
- Cummins exhibits strong financial discipline with improving operating margins and robust free cash flow facilitating steady shareholder returns.
Considerations
- The company faces cyclical risks tied to the global industrial and automotive sectors, which can lead to revenue volatility in economic downturns.
- Cummins is exposed to raw material cost inflation and supply chain disruptions, which can pressure margins and delay production.
- Significant competition in emissions-compliant engine technologies and electrification markets increases pressure on pricing and market share.
Related Market Insights
The Great Automotive Shift: Why Legacy Carmakers Are Finally Getting Serious
Explore the automotive industry's shift to EVs & autonomous tech. Invest in leading carmakers like GM, Ford, Tesla via Nemo's thematic Neme. Start investing from $1.
Aimee Silverwood | Financial Analyst
July 25, 2025
Related Market Insights
The Great Automotive Shift: Why Legacy Carmakers Are Finally Getting Serious
Explore the automotive industry's shift to EVs & autonomous tech. Invest in leading carmakers like GM, Ford, Tesla via Nemo's thematic Neme. Start investing from $1.
Aimee Silverwood | Financial Analyst
July 25, 2025
O'Reilly Auto Parts (ORLY) Next Earnings Date
O'Reilly Automotive (ORLY) is scheduled to report its next earnings on or around April 22-28, 2026, with estimates converging on April 22, 2026 based on historical patterns of late-April Q1 releases. This report will cover the first quarter of 2026 (Q1 2026) results. Investors should monitor official company announcements for the precise date and time, as it remains unconfirmed post the recent Q4 2025 release in early February.
Cummins (CMI) Next Earnings Date
Cummins (CMI) next earnings release is estimated for May 4, 2026, covering the first quarter of 2026 ending March 31. This date aligns with historical patterns, as the company has not yet confirmed it officially. A conference call is typically scheduled shortly after for investor updates.
O'Reilly Auto Parts (ORLY) Next Earnings Date
O'Reilly Automotive (ORLY) is scheduled to report its next earnings on or around April 22-28, 2026, with estimates converging on April 22, 2026 based on historical patterns of late-April Q1 releases. This report will cover the first quarter of 2026 (Q1 2026) results. Investors should monitor official company announcements for the precise date and time, as it remains unconfirmed post the recent Q4 2025 release in early February.
Cummins (CMI) Next Earnings Date
Cummins (CMI) next earnings release is estimated for May 4, 2026, covering the first quarter of 2026 ending March 31. This date aligns with historical patterns, as the company has not yet confirmed it officially. A conference call is typically scheduled shortly after for investor updates.
Which 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
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
Explore BasketBuy ORLY or CMI in Nemo
Zero Commission
Trade stocks, ETFs, and more with zero commission. Keep more of your returns.
Trusted & Regulated
Part of Exinity Group 2015, serving over a million customers globally.
6% Interest on Cash
Earn 6% AER on uninvested cash with daily interest payments.
Discover More Comparisons
O'Reilly Auto Parts vs Coupang
O'Reilly Auto Parts vs Coupang: a neutral comparison of business models, financial performance and market context to help researchers understand value creation and growth potential.
O'Reilly Auto Parts vs Royal Caribbean Group
Compare O'Reilly Auto Parts and Royal Caribbean Group across business models, financials, and market context to inform research on revenue, margins, debt, and growth.
O'Reilly Auto Parts vs Marriott
A neutral comparison of O'Reilly Auto Parts and Marriott International, outlining business models, financial performance, and market context to help readers research these companies.