The Stock Market's Newest Stock Split Is Up Crushing The Market. Still Time to Buy

A new stock split is coming up soon, and it’s not a tech firm like you would probably expect. It’s actually O’Reilly Automotive (NASDAQ:ORLY), an auto parts store chain that could be an unexpected winner amid the trade wars of 2025.

When a company enacts a forward stock split, that’s usually a good sign. It typically means that the share price has increased substantially over time, and there’s the potential for more positive momentum. For examples of this, consider how well the stocks of Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) performed after their most recent forward splits.

Yet, some skeptics might worry that O’Reilly Automotive stock rallied too far, too fast and is due for a pullback. We can check the facts and stats, however, and conclude that ORLY stock should have plenty of fuel in the tank after its upcoming share split.

ORLY Stock: Mark Your Calendar!

Is a forward split for O’Reilly Automotive stock a good idea in 2025? I would say definitely yes, since the shares currently trade at nearly $1,400 apiece.

Sure, some brokers will allow you to purchase fractional shares of ORLY stock. However, it would be much easier and more affordable for most investors to buy O’Reilly Automotive shares after a forward split reduces the price.

Consequently, O’Reilly Automotive’s board approved a 15-for-1 split of its common shares, set to take effect on June 9 after the market closes. This would reduce the stock’s price from nearly $1,400 (theoretically, if the price stays there) to around $93.

With that, more investors will be able to participate in an ultra-powerful momentum stock. The upward trajectory of ORLY stock has been breathtaking:

Is this a reflection of O’Reilly Automotive’s fundamental strength? CEO Brad Beckham certainly believes so. He declared, “The current per share price level of our common stock reflects the continued strong financial performance of O’Reilly since our initial public offering in April 1993.”

Beckham further noted that, since O’Reilly Automotive last split its stock in 2005, the share price has increased by 4,330%, or around 21% on an annualized basis. So, while there are no guarantees for the future, history shows that great things can happen after a forward stock split.

Rising Revenue in a Challenging Quarter

The first quarter of 2025 was a time when tariff tensions showed up in the headlines and some businesses’ sales suffered. The data, however, indicates that O’Reilly Automotive actually managed to grow its sales in Q1.

Specifically, O’Reilly Automotive increased its sales by 4%, from $3.976 billion in the year-earlier quarter to $4.137 billion in Q1 of 2025. During that same time frame, O’Reilly Automotive improved its earnings per share (EPS) from $9.20 to $9.35.

Looking toward the full year of 2025, O’Reilly Automotive expects to open 200 to 210 new stores, which is a sure sign of growth. In addition, the company’s full-year outlook calls for revenue of $17.4 billion to $17.7 billion and EPS of $42.90 to $43.40.

On top of all that, Beckham reassured investors with a declaration about comparable store sales, which is an important metric for auto parts stores. The CEO stated that O’Reilly Automotive is maintaining its 2025 comparable store sales guidance range of 2% to 4% and has “not changed the key assumptions behind this guidance range from our original guidance.”

O’Reilly Automotive: A Trade War Winner

Should Beckham and other executives at O’Reilly Automotive remain so optimistic about the future of the company? Perhaps the CEO’s confidence is justified as O’Reilly Automotive could benefit from the ongoing U.S.-China trade war.

This might sound counterintuitive because tariffs are tough on automotive businesses in general. Yet, analysts at Truist believe that tariffs may provide a tailwind to O’Reilly Automotive because high prices for new automobiles will incentivize people to repair their current vehicles.

Investors seem to understand this argument. The potential for O’Reilly Automotive to be a trade war winner helps to explain why ORLY stock is up 18% year to date even though the major stock market indexes are down.

O’Reilly Automotive’s success isn’t just about benefiting from tariff tensions, though. All in all, O’Reilly Automotive is a fundamentally sound business and a solid contender in the American auto parts space.

Hence, ORLY stock has the potential to continue its rally after the company splits its shares in June. Like a car’s engine, O’Reilly Automotive has many parts that make it run, and O’Reilly’s business appears to be running smoothly in 2025 so far.

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