O’Reilly Automotive continues to thrive with durable customer demand and impressive profits. The stock has surged over 57,000% since its IPO in 1993. The company benefits from consistent spending on auto parts due to an aging vehicle fleet and posted 5.7% revenue growth in 2024.

Despite steep valuation concerns, O’Reilly’s quality business model and strong operating margins make it appealing. While the stock price may not offer a margin of safety for new buyers, its history of stock buybacks and consistent growth could still outperform the market. Investors should consider their valuation preferences in decision-making.

While O’Reilly stock has been a massive winner historically, its high valuation may not set investors up for life. Diversifying a portfolio with multiple stocks is a safer bet for long-term success. Despite its favorable qualities, O’Reilly’s stock price remains expensive, trading at a P/E ratio of 34, raising concerns about potential returns.

Read more at Yahoo Finance: Could Buying O’Reilly Automotive Stock Today Set You Up for Life?