<div id="readability-page-1"><div><p>Leverage Shares has launched a new ETF that seeks 2X daily exposure to O'Reilly Automotive (ORLY), putting a spotlight on the auto parts retailer's recent operating metrics and its positioning in what many view as a defensive sector.</p> <p>See our latest analysis for O'Reilly Automotive.</p> <p>The new leveraged ETF arrives at a time when O'Reilly Automotive’s 7.4% 1 month share price return and 9.8% year to date share price return have drawn fresh attention, while its 1 year total shareholder return of 18.7% builds on very strong 3 and 5 year gains.</p> <p>If this move in auto parts has you thinking more broadly about vehicles, it could be a good moment to widen your watchlist with other auto manufacturers.</p> <p>With O'Reilly posting solid same store sales growth, a 19.5% operating margin and a recent run in the share price, the key question now is whether the stock still offers value or if the market is already pricing in future growth.</p> <h2>Most Popular Narrative: 10% Undervalued</h2> <p>Compared to a last close of $99.23, the most followed narrative puts O'Reilly Automotive's fair value at about $110.20, implying some valuation upside that frames how investors are viewing the new 2X ETF.</p> <blockquote> <p><em>The company's commitment to store expansion, with the opening of 38 net new stores across the U.S. and Mexico in the first quarter, supports long term revenue growth potential by increasing market presence and customer reach.</em></p> </blockquote> <p><em>Read the complete narrative.</em></p> <p>Curious what sits behind that fair value call? The narrative focuses on steady top line growth, firm margins, and a future earnings profile that assumes a premium valuation multiple.</p> <p><strong>Result: Fair Value of $110.20 (UNDERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, that upside view could be challenged if tariff or supply chain shocks lift product costs, or if higher store expenses squeeze margins more than expected.</p> <p>Find out about the key risks to this O'Reilly Automotive narrative.</p> <h2>Another Take on Valuation</h2> <p>The popular narrative sees O'Reilly Automotive as about 10% undervalued at $99.23 versus a fair value of $110.20, but the earnings multiple paints a tougher picture. The stock trades on a P/E of 33.7x, versus 20.5x for the US Specialty Retail industry and a 19.4x fair ratio, which suggests investors are already paying up for quality. The peer group average P/E of 37.8x offers some relative comfort, yet the gap to the fair ratio raises questions about how much upside is left if sentiment cools.</p> <p>See what the numbers say about this price — find out in our valuation breakdown.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/ac1f1c0b-6cec-4fee-928b-0f71e1116760/chart/pe-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/ac1f1c0b-6cec-4fee-928b-0f71e1116760/chart/pe-multiple-vs-industry"/><figcaption>NasdaqGS:ORLY P/E Ratio as at Jan 2026</figcaption></figure><h2> Build Your Own O'Reilly Automotive Narrative</h2> <p>If you see the numbers differently, or you just want to test your own assumptions against the market, you can build a custom view in minutes with Do it your way.</p> <p>A great starting point for your O'Reilly Automotive research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.</p> <h2>Looking for more investment ideas?</h2> <p>If you stop with a single stock view, you risk missing other opportunities that fit your style, so broaden your research now while the data is right in front of you.</p> <ul> <li>Spot potential value plays early by scanning these 864 undervalued stocks based on cash flows that currently trade below what their cash flows might justify.</li> <li>Ride the growth of next generation automation by tracking these 24 AI penny stocks that are applying artificial intelligence across real world products and services.</li> <li>Tap into digital finance trends by reviewing these 18 cryptocurrency and blockchain stocks connected to blockchain, payment networks, and crypto infrastructure.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p></div></div>

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<p>Leverage Shares has launched a new 2X leveraged ETF targeting O'Reilly Automotive (ORLY), highlighting the company's strong recent performance with a 7.4% one-month return and 9.8% year-to-date return. Analysts suggest ORLY is about 10% undervalued, with a fair value of $110.20 compared to its last close of $99.23. The company is expanding its market presence with 38 new stores, supporting long-term growth. However, concerns about potential cost increases due to tariffs or supply chain issues could impact margins. The stock trades at a P/E of 33.7x, higher than industry averages, raising questions about future upside.</p>

Assessing O'Reilly Automotive (ORLY) Valuation As A New 2X Leveraged ETF Targets The Stock