AZO - O'Reilly Automotive: A Safe Bet Amidst Heightened Inflation And Growth Scare

• Boasting a track record of top-notch comparable sales growth, O’Reilly has the allure of being one of the most reliable compounders out there.
• Compared to its nearest competitors, the Springfield-based automotive aftermarket parts retailer comes out on top when focusing on profitability, ROIC, leverage and sustainable sales growth.
• With household disposable income falling, ORLY’s counter-cyclical business is at the forefront of delivering attractive risk-adjusted returns to shareholders in both the short and long run.
• The steady secular growth trends for the automotive aftermarket remain intact. This is especially true in the light of current economic events. The inflationary shock will likely persist well into 2023 and even 2024.
• Over the past decades, ORLY shares have proven to outperform the index during periods of economic distress (and therefore falling consumer confidence), which, in part, were inflicted by supply chain constraints. We rate ORLY shares "BUY" with projected annualized returns in excess of 14%.

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