O’Reilly Automotive’s (ORLY) Professional Segment Lifted the Stock in Q3

Qualivian Investment Partners, an investment partnership focused on long-only public equities, released its Q3 2025 investor letter. A copy of the letter can be downloaded here. The fund outperformed the iShares MSCI USA Quality Factor ETF (QUAL) by 69.2% and 61.3% on a gross and net basis, since inception through September 30, 2025. It also exceeded the S&P 500 by 32.7% and 26.1% respectively, on a gross and net basis. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter Qualivian Investment Partners highlighted stocks such as O’Reilly Automotive, Inc. (NASDAQ:ORLY). O’Reilly Automotive, Inc. (NASDAQ:ORLY) is a retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories. The one-month return for O’Reilly Automotive, Inc. (NASDAQ:ORLY) was -9.50%, and its shares gained 12.65% over the last 52 weeks. On December 22, 2025, O’Reilly Automotive, Inc. (NASDAQ:ORLY) stock closed at $91.75 per share, with a market capitalization of $77.623 billion.

Qualivian Investment Partners stated the following regarding O’Reilly Automotive, Inc. (NASDAQ:ORLY) in its third quarter 2025 investor letter:

“The S&P 500’s performance in Q3 2025 was primarily driven by two key themes: continued investment and enthusiasm for Artificial Intelligence (AI), and the Federal Reserve’s delivery of its first interest rate cut since 2024, which boosted investor risk appetite. Sector rotation saw Information Technology (especially semiconductors) and Communication Services maintain leadership due to AI-related growth. Also, market breadth improved as small-cap stocks staged a significant rally, though defensive sectors like Consumer Staples and Healthcare generally lagged. Within that context, our top 3 contributors in the quarter were Alphabet (GOOGL), O’Reilly Automotive (ORLY), and TJX Corp. (TJX).

O’Reilly Automotive, Inc. (NASDAQ:ORLY) delivered strong Q3 2025 results, with comparable store sales increasing 5.6% and diluted earnings per share (EPS) growing 12% to $0.85, both exceeding analysts’ expectations. The company’s professional segment was the primary driver of growth, achieving over a 10% increase in comparable store sales, though the do-it-yourself (DIY) segment experienced some modest pressure in the quarter.”

Jim Cramer On O’Reilly Automotive (ORLY): "Buy the One That's Not Going to Stock Split"

O’Reilly Automotive, Inc. (NASDAQ:ORLY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 75 hedge fund portfolios held O’Reilly Automotive, Inc. (NASDAQ:ORLY) at the end of the third quarter, which was 62 in the previous quarter. While we acknowledge the risk and potential of O’Reilly Automotive, Inc. (NASDAQ:ORLY) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than O’Reilly Automotive, Inc. (NASDAQ:ORLY) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered O’Reilly Automotive, Inc. (NASDAQ:ORLY) and shared TimesSquare Capital U.S. Focus Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.