Moneytr33 presents a bearish thesis on O’Reilly Automotive, Inc. Share price at $90.13 on June 30th. ORLY’s trailing and forward P/E ratio at 33.13 and 30.67 respectively. AEye, Inc. (LIDR) questioned as cheapest stock insiders are buying in March. ORLY faces short case despite operational excellence, trading at 31x forward earnings.

ORLY offers only 8-9% forward return due to mid-single-digit revenue growth and 3% free cash flow yield. Margins face headwinds, operating costs rise, and share buybacks become uneconomic. Pro segment growth decelerates, competitive threats rise, and structural risks loom. Valuation above historical average implies over 30% downside potential.

AutoZone, Inc. had a bullish thesis in June 2025, realizing modest gains. ORLY not among 30 most popular stocks among hedge funds. Some AI stocks may offer greater promise for higher returns with limited downside risk compared to ORLY. For an extremely cheap AI stock benefiting from Trump tariffs, view free report.

Read more at Yahoo Finance: O’Reilly Automotive, Inc. (ORLY): A Bear Case Theory