Is O’Reilly Automotive (ORLY) the Top Stock to Buy According to Akre Capital Management?

From Yahoo Finance: 2025-03-29 16:32:00

Akre Capital Management is known for its disciplined investment philosophy focusing on exceptional businesses with capable leaders. Led by founder Chuck Akre until 2020, the firm emphasizes long-term growth and risk management. Akre Capital avoids setting sell targets, prioritizing businesses with solid fundamentals over short-term gains.

Chuck Akre, a seasoned asset manager with over five decades of experience, founded Akre Capital Management in 1989. His deep understanding of securities and investment strategies shaped the firm’s approach. Akre relocated the firm to Middleburg, Virginia, in 2000, emphasizing independence and a patient investment process away from Wall Street distractions.

As of Q4 2024, Akre Capital Management manages $11.56 billion in securities with a highly concentrated portfolio. The top ten holdings account for 94.82% of total assets. Chuck Akre’s leadership and commitment to compounding capital at superior rates have led to consistent growth for investors. He continues to contribute as Chairman of Akre Capital Management.

O’Reilly Automotive, Inc. (ORLY) is a leading American retailer of automotive aftermarket parts, tools, and accessories with over 6,000 stores. In Q4 2024, ORLY’s revenue increased by 7% to $4.10 billion, with a gross profit of $2.10 billion. Despite a slight decline in net income, diluted EPS grew by 3% to $9.50, supported by consistent financial strength.

In a significant move, ORLY announced a 15-for-1 stock split as a special dividend, pending shareholder approval. The split aims to broaden stock accessibility for investors and employees, aligning with ORLY’s tradition of rewarding team members. If approved, shareholders as of June 2, 2025, will receive 14 additional shares for each held, enhancing employee engagement.

ORLY ranks 5th on Akre Capital Management’s list of top stocks to buy. While ORLY shows promise, some AI stocks may offer higher returns in a shorter timeframe. For investors seeking an AI stock with potential gains and low earnings multiple, exploring the cheapest AI stock could be beneficial.

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