5 Stocks to Buy Before the Next Recession

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In this article, we discuss 10 stocks to buy before the next recession. If you want our detailed analysis of the stock market outlook, go directly to 10 Stocks to Buy Before the Next Recession.

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

Number of Hedge Fund Holders: 50 

O’Reilly Automotive, Inc. (NASDAQ:ORLY) is a Missouri-based company that designs auto parts, automotive supplies, and equipment for industrial applications, B2B sales, and do-it-yourself clientele. The stock traded higher after O’Reilly Automotive, Inc. (NASDAQ:ORLY)’s solid earnings for Q4 and 2022 guidance were received positively by investors.

O’Reilly Automotive, Inc. (NASDAQ:ORLY) is one of the stocks to buy before the next recession, since the company is expanding its business and customer base given consistent sales and strong profitability. O’Reilly Automotive, Inc. (NASDAQ:ORLY) withstood the pandemic-driven market turbulence, and as people try to fix their vehicles and not spend additional money on mechanics and workshops during a recession, O’Reilly Automotive, Inc. (NASDAQ:ORLY) will benefit as it gets a majority of its revenue from DIY sales. 

On February 11, RBC Capital analyst Steven Shemesh elevated the price target on O’Reilly Automotive, Inc. (NASDAQ:ORLY) to $815 from $755 and kept an Outperform rating on the stock. The analyst cited “strong” Q4 results and an overall flourishing sector as reasons for the upgrade. He also noted that O’Reilly Automotive, Inc. (NASDAQ:ORLY)’s comps grew 14.5% during the fourth quarter of 2021.

Akre Capital Management held the leading position in O’Reilly Automotive, Inc. (NASDAQ:ORLY) as of December 2021, with 1.5 million shares worth $1.11 million. Overall, the number of long positions in O’Reilly Automotive, Inc. (NASDAQ:ORLY) held by the smart money grew to 50 in Q4 from 44 in the prior quarter. 

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