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 Faces Analyst Skepticism After Disappointing 2026 Guidance Despite Q4 Operational Beat
- Q4 earnings per share of $0.71 missed analyst expectations by a penny, though revenue of $4.41 billion exceeded forecasts, while comparable store sales climbed 5.6% year-over-year demonstrating underlying demand strength
- 2026 earnings guidance of $3.10–$3.20 per share fell short of the analyst consensus of $3.32, signaling management concerns about profitability despite revenue expectations near $18.7–$19 billion versus Wall Street's $19 billion estimate
- SG&A expenses surged due to elevated healthcare and casualty claim costs for employees, narrowing profit margins and suggesting inflation pressures are eroding operational leverage even as the company grows sales
Cummins Stock Faces Valuation Headwinds Despite Analyst Optimism and Strong Fundamentals
- Q4 earnings delivered $5.81 adjusted EPS versus $5.17 consensus estimate, and EBITDA beat by 2%, but this strength hasn't prevented valuation concerns from emerging as the stock trades well above estimated fair value
- Insider selling accelerated in late February, with a VP dumping $758k in stock after the company's strong surge, signaling executive concerns about current price levels and stoking bearish sentiment
- Analyst outlooks remain mixed: Truist raised its price target to $703 citing growth catalysts, while UBS kept a Neutral rating at $565 on valuation grounds, and short interest has increased noticeably in recent weeks
O'Reilly Automotive Faces Analyst Skepticism After Disappointing 2026 Guidance Despite Q4 Operational Beat
- Q4 earnings per share of $0.71 missed analyst expectations by a penny, though revenue of $4.41 billion exceeded forecasts, while comparable store sales climbed 5.6% year-over-year demonstrating underlying demand strength
- 2026 earnings guidance of $3.10–$3.20 per share fell short of the analyst consensus of $3.32, signaling management concerns about profitability despite revenue expectations near $18.7–$19 billion versus Wall Street's $19 billion estimate
- SG&A expenses surged due to elevated healthcare and casualty claim costs for employees, narrowing profit margins and suggesting inflation pressures are eroding operational leverage even as the company grows sales
Cummins Stock Faces Valuation Headwinds Despite Analyst Optimism and Strong Fundamentals
- Q4 earnings delivered $5.81 adjusted EPS versus $5.17 consensus estimate, and EBITDA beat by 2%, but this strength hasn't prevented valuation concerns from emerging as the stock trades well above estimated fair value
- Insider selling accelerated in late February, with a VP dumping $758k in stock after the company's strong surge, signaling executive concerns about current price levels and stoking bearish sentiment
- Analyst outlooks remain mixed: Truist raised its price target to $703 citing growth catalysts, while UBS kept a Neutral rating at $565 on valuation grounds, and short interest has increased noticeably in recent weeks
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.
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Related Market Insights
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O'Reilly Auto Parts (ORLY) Next Earnings Date
O'Reilly Automotive's next earnings release is estimated to occur between April 22-29, 2026, with sources indicating dates ranging from April 21 to April 29 based on historical reporting patterns. The report will cover the company's first quarter of 2026 results. The company has not yet officially confirmed the exact announcement date, though April 22-23 represents the most commonly cited estimate across financial platforms. Investors should monitor O'Reilly's investor relations website for the official confirmation as the date approaches.
Cummins (CMI) Next Earnings Date
Cummins (CMI) is scheduled to announce its next earnings report on May 4, 2026, covering the company's Q1 2026 results. Analysts are projecting an earnings per share of $5.72 for this quarter. The earnings conference call will follow on May 5, 2026 at 10:00 A.M. ET, where management will discuss financial performance and forward guidance.
O'Reilly Auto Parts (ORLY) Next Earnings Date
O'Reilly Automotive's next earnings release is estimated to occur between April 22-29, 2026, with sources indicating dates ranging from April 21 to April 29 based on historical reporting patterns. The report will cover the company's first quarter of 2026 results. The company has not yet officially confirmed the exact announcement date, though April 22-23 represents the most commonly cited estimate across financial platforms. Investors should monitor O'Reilly's investor relations website for the official confirmation as the date approaches.
Cummins (CMI) Next Earnings Date
Cummins (CMI) is scheduled to announce its next earnings report on May 4, 2026, covering the company's Q1 2026 results. Analysts are projecting an earnings per share of $5.72 for this quarter. The earnings conference call will follow on May 5, 2026 at 10:00 A.M. ET, where management will discuss financial performance and forward guidance.
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
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