O’Reilly Automotive Leaves Autozone In The Dust—The Valuation Gap Explained!

O’Reilly Automotive has been one of the top-performing retail stocks in 2025, rising over 30% yearto-date and recently trading at $103.47. While this rally might make the stock appear expensive relative to peers such as AutoZone, Advance Auto Parts, and Genuine Parts, a closer look at the company’s fundamentals justifies its elevated valuation. Sales are projected to grow more than 6% annually over the next two years—significantly ahead of peers struggling with stagnation or outright declines. The company’s superior logistics capabilities, high replenishment frequency, and rapid delivery system are yielding consistent share gains. Analysts continue to back the name, with over 75% of coverage ratings at “Buy” and targets implying further upside. Trading at a trailing P/E of 37.5x and an EV/EBIT of 29.4x as of September 25, 2025, O’Reilly’s valuation remains elevated—but fundamentally supported. Here are four key reasons why the stock still deserves its premium over peers.