5 American Stocks That Will Benefit from China’s Economic Slowdown

In this article, we discuss 5 American stocks that will benefit from China’s economic slowdown. If you want to see more stocks that are positioned to be beneficiaries of the Chinese economic slump, click 10 American Stocks That Will Benefit from China’s Economic Slowdown. 

5. O’Reilly Automotive, Inc. (NASDAQ:ORLY)

Number of Hedge Fund Holders: 48

O’Reilly Automotive, Inc. (NASDAQ:ORLY) is a supplier of automotive aftermarket parts, tools, supplies, equipment, and related accessories in the United States. For FY22, the company expects revenue to be between $14.0 billion and $14.30 billion, in line with Street revenue estimates of $14.30 billion. Demand for US auto part manufacturers will increase once exports from China decrease on the back of an economic slowdown and supply bottlenecks, benefiting the likes of O’Reilly Automotive, Inc. (NASDAQ:ORLY). 

On July 29, MKM Partners analyst David Bellinger raised the price target on O’Reilly Automotive, Inc. (NASDAQ:ORLY) to $770 from $700 and reaffirmed a Buy rating on the shares after its Q2 results and guidance. The analyst reduced his FY22 EPS estimate to $31.84 from $33.05 and FY23 estimate to $34.90 from $36.09, citing soft outlook in DIY trends, but he continues to see a “relatively solid” demand pattern for the aftermarket auto parts space with or without more price inflation.

According to Insider Monkey’s data, 48 hedge funds were long O’Reilly Automotive, Inc. (NASDAQ:ORLY) at the end of March 2022, with collective stakes worth $2.6 billion, compared to 50 funds the previous quarter worth $27.3 billion. Charles Akre’s Akre Capital Management is the leading stakeholder of the company, with 1.5 million shares worth $1 billion.