4. O’Reilly Automotive Inc. (NASDAQ:ORLY)
O’Reilly Automotive Inc. (NASDAQ: ORLY) ranks No. 4 among the best large-cap stocks to buy under $100, and this is one of the strongest examples of how a seemingly simple business can become a serious long-term compounder. Trading at $88.49, down 1.33% based on the provided data, O’Reilly is not a trendy artificial intelligence company, a biotech moonshot, or a flashy software platform. It is an automotive aftermarket parts retailer. But that is exactly what makes the story interesting. For investors searching for consumer discretionary stocks, retail stocks under $100, auto parts stocks, large-cap stocks to buy, best stocks under $100, and defensive growth stocks, O’Reilly offers a business model tied to vehicle maintenance, repair demand, professional mechanics, do-it-yourself customers, and consistent store expansion.
On April 29, O’Reilly Automotive reported first-quarter 2026 total revenue of $4.56 billion, representing a 10% increase from $4.14 billion in the same quarter one year ago. That is a strong growth rate for a mature retail business, especially one operating in a highly competitive consumer environment. The company’s growth was highlighted by an 8.1% increase in comparable store sales, driven by double-digit growth in its professional business and mid-single-digit growth in DIY. Comparable store sales are one of the most important metrics in retail because they show how existing locations are performing, excluding the effect of newly opened stores. In O’Reilly’s case, the numbers suggest that the company’s current store base is still growing solidly.
The professional business is especially important. This side of O’Reilly serves professional mechanics, repair shops, and commercial customers who need reliable parts availability, fast delivery, and consistent service. When professional demand grows at a double-digit pace, it suggests that O’Reilly is not only benefiting from casual consumer purchases but also gaining traction with repeat commercial customers. That kind of demand can be valuable because professional customers often buy more frequently and rely heavily on parts suppliers that can deliver quickly. In the automotive aftermarket world, speed and availability matter. If a repair shop cannot get the right part quickly, it can lose time, delay service, and frustrate customers.
O’Reilly also saw mid-single-digit growth in DIY, or do-it-yourself, sales. This is another important part of the business because consumers often turn to auto parts retailers when they want to maintain or repair their own vehicles. The trivia here is that auto parts demand can sometimes hold up better than other retail categories when consumers are under pressure. Why? Because people still need to keep their cars running. If buying a new vehicle becomes too expensive due to higher interest rates, inflation, or tighter household budgets, many consumers may choose to repair and maintain older vehicles instead. That can support demand for replacement parts, batteries, fluids, filters, tools, and maintenance items.
The company’s profitability also looked strong. Gross profit rose 11% to $2.35 billion, representing 51.5% of sales. Selling, general, and administrative expenses increased 9% to $1.51 billion, but operating income still grew 14% to $842 million, equal to 18.5% of total sales. That operating margin is impressive for a retailer and shows that O’Reilly is not just growing revenue; it is also converting sales into profit effectively. Retailers with strong margins often have advantages in pricing, inventory management, supply chain execution, store operations, and customer relationships.
Net income increased 12% to $604 million, up from $538 million in the prior-year period. Diluted earnings per share rose 16% to $0.72 from $0.62, helped not only by income growth but also by share repurchases. O’Reilly generated $1 billion in year-to-date net cash from operating activities and invested $923 million to repurchase 10 million shares at an average price of $92.45. It also repurchased another 3.6 million shares after the quarter ended. This is a major part of O’Reilly’s long-term story. The company has historically used share buybacks aggressively, and when buybacks are supported by strong cash flow and consistent growth, they can help increase earnings per share over time.
Looking ahead, O’Reilly updated its selected full-year 2026 guidance. The company is targeting 225 to 235 net new store openings and comparable store sales growth of 3.0% to 5.0%. Total revenue is expected to range from $18.7 billion to $19.0 billion, while diluted EPS is projected between $3.15 and $3.25. The planned store expansion is important because it shows that O’Reilly still sees room to grow its physical footprint. In an era when many retailers are shrinking store counts or struggling with online competition, O’Reilly continues to invest in its network because the auto parts business still depends heavily on local availability, quick fulfillment, and service.
O’Reilly operates in the distribution and retail of automotive aftermarket parts, equipment, supplies, tools, and accessories. Its business may sound ordinary, but the numbers show why the stock deserves attention. Strong comparable store sales, double-digit professional growth, improving operating income, active share repurchases, and continued store expansion make O’Reilly one of the more compelling large-cap stocks under $100 for long-term investors. It is a practical, cash-generating retail story with defensive characteristics and growth potential.
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