AZO - O'Reilly Automotive: Long-Term Drivers But Potential Speed Bumps Ahead

• O'Reilly has delivered strong and steady growth in a slow growing industry due to superb execution, market share gains, and several recent exogenous catalysts.
• Since the COVID outbreak, the company's same-store sales, revenues, and earnings have been boosted by inflationary pressures resulting from the Federal Reserve's easy money policy and supply chain disruptions.
• O'Reilly's earnings margins could compress should the cost of its products when inflation pressures abate, but management appears to be managing inventory prudently to minimize the potential impact.
• The valuation is attractive for long-term investors but be prepared for a potential speed bump in revenue and earnings growth that could cause near-term stock price volatility.

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