Latest news with #O'ReillyAutomotive
Yahoo
2 days ago
- Automotive
- Yahoo
1 Stock-Split Stock to Buy Hand Over Fist in July and 1 to Avoid
Key Points Stock splits don't change fundamentals, but there's some evidence they can lead to outperformance. O'Reilly has been a longtime winner in the auto parts industry. Interactive Brokers has delivered strong growth, but lower interest rates would put a significant dent in its profits. 10 stocks we like better than O'Reilly Automotive › Stock splits don't do anything to change the fundamentals of a stock, but investors still like them nonetheless. Some believe they make the stock cheaper, which is not really true. Though stock splits do lower the individual share price, they don't affect the valuation of the stock, which is what actually matters. Additionally, there's some evidence that stocks tend to outperform the S&P 500 after their split. That could be because management chooses the timing of the split, and they're likely to do it when they're confident that the stock can keep rising. Additionally, if investors see the stock split as a bullish signal, that could become a self-fulfilling prophecy, driving the stock up because people expect growth after the split. While there are a number of attractive stock-split stocks on the market, not all of them are buys. Let's take a look at one stock-split stock worth buying and another one to avoid. One stock-split stock to buy O'Reilly Automotive (NASDAQ: ORLY) has quietly been one of the best-performing stocks of the 21st century. The auto parts retailer has delivered a steady stream of growing profits and established a competitive advantage in serving the commercial channel, meaning repair shops. In that business, having the needed part in stock and being able to deliver quickly is essential. O'Reilly has also blanketed the U.S. with stores to drive its growth. Since 2000, the stock is up more than 12,000%, making it a 100-bagger. Given those gains, it shouldn't be a surprise to see the company finally issuing a stock split. It announced a 15-for-1 split on June 2, which went into effect on June 9. O'Reilly trades at a premium, but it's well-deserved. In the first quarter, comparable sales rose 3.6%, and the company continues to open new stores, with 38 new locations in Q1. For the full year, it sees comparable sales of 2% to 4%, and earnings per share of $42.90 to $43.40 (before the split was announced). That's about $2.90 in earnings per share. O'Reilly's distribution network is a key source of competitive advantage for the company. Having the right inventory in stock has helped it serve both the commercial and DIY channels. The company has also benefited as the average age of a car on the road has increased. This means that Americans are spending more money on repairs, instead of buying new cars. One stock-split stock to avoid The stock-split stock to avoid is Interactive Brokers (NASDAQ: IBKR), a leading discount brokerage, which issued a 4-for-1 stock split in June. It's true that Interactive Brokers' recent performance has been impressive. In Q1, commission revenue rose 27% to $516 million, buoyed by higher trading volume. As with other brokerages, the bull market has been good to Interactive Brokers, as investors tend to be more active when they believe stocks will go up. Customer accounts in the quarter were up 32% to 3.87 million, and equity rose 34% to $664.5 billion. Those numbers are all positive and show the business delivering solid growth. However, the reason to avoid the stock is that most of its revenue currently comes from interest income, and that may not be sustainable. While interest rates have remained elevated due to fears about inflation coming back, the Federal Reserve still aims to bring down interest rates, which will cool off Interactive Brokers' most valuable profit stream. The company collects interest on both the cash it holds and margin loans, and says that yields are generally a reflection of benchmark interest rates, which are greatly influenced by the Fed. Cash and margin loans contribute a similar amount of its income. Additionally, the stock is trading at a price-to-earnings ratio of 35, though interest rate cuts or a sell-off in stocks could wipe out profits. While the company deserves credit for its execution and the growth of the business, the valuation and reliance on interest income set the stock up for a potential pullback. Should you buy stock in O'Reilly Automotive right now? Before you buy stock in O'Reilly Automotive, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and O'Reilly Automotive wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group. The Motley Fool recommends the following options: long January 2027 $175 calls on Interactive Brokers Group and short January 2027 $185 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy. 1 Stock-Split Stock to Buy Hand Over Fist in July and 1 to Avoid was originally published by The Motley Fool
Yahoo
6 days ago
- Automotive
- Yahoo
O'Reilly Gears Up to Report Q2 Earnings: What's in the Cards?
O'Reilly Automotive ORLY is slated to release second-quarter 2025 results on July 24, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter's earnings per share (EPS) and revenues is pegged at 78 cents and $4.53 billion, the second quarter, the consensus estimate for O'Reilly's earnings has moved down by a penny in the past 90 days. Its bottom-line estimates imply 11.43% growth from the year-ago reported Zacks Consensus Estimate for ORLY's quarterly revenues implies a year-over-year increase of 6.08%. The company's earnings beat estimates in one of the trailing four quarters and missed thrice, delivering an average negative surprise of 1.75%. This is depicted in the graph below: O'Reilly Automotive, Inc. Price and EPS Surprise O'Reilly Automotive, Inc. price-eps-surprise | O'Reilly Automotive, Inc. Quote Q1 Highlights In the first quarter of 2025, ORLY's adjusted EPS of $9.35 missed the Zacks Consensus Estimate of $9.83 but increased from $9.20 reported in the year-ago quarter. The company reported net sales of $4.14 billion, which lagged the Zacks Consensus Estimate of $4.17 billion. The top line, however, rose 4% year over year. Things to Note Per S&P Global Mobility, the average age of vehicles in the United States increased to 12.8 years in 2025 from 12.6 years in 2024. The growth in the average age of vehicles calls for the need for maintenance to ensure proper functionality, boosting sales of auto parts retailers like O'Reilly. The company plans to increase its inventory level for the rest of the year to ensure there's enough stock in its stores, hubs and distribution centers. This will help keep products available in all the markets it serves. At the end of the first quarter of 2025, the average inventory per store was $806,000, 4.3% higher than the year-ago period. For 2025, the company aims to grow its inventory per store by 5%.However, in the first quarter of 2025, SG&A expenses per store increased 4.1% year over year. For 2025, the company expects per-store SG&A expense growth of 2-2.5% amid wage pressures and rising investments in hub stores and technology. While the growth is slower than last year, it remains on an upward trend, impacting the company's a positive sales outlook for 2025 is likely to have bolstered ORLY's top-line growth in the to-be-reported quarter, rising operating expenses are likely to have hurt the company's margin in the second quarter.(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Earnings Whispers Our proven model does not conclusively predict an earnings beat for the automotive parts retailer for the quarter to be reported, as it does not have the right combination of the two key ingredients. A positive Earnings ESP, combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. This is not the case ESP: ORLY has an Earnings ESP of -0.85%. This is because the Most Accurate Estimate is pegged lower than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Rank: It currently carries a Zacks Rank #2. Stocks With the Favorable Combination Here are some players from the auto space that, per our model, have the correct ingredients to post an earnings beat this time Corporation LEA has an Earnings ESP of +5.50% and a Zacks Rank #3 at present. The company is set to release second-quarter 2025 results on July 25. You can see the complete list of today's Zacks #1 Rank stocks Zacks Consensus Estimate for LEA's to-be-reported quarter's EPS and revenues is pegged at $3.15 per share and $5.74 billion, respectively. Lear beat earnings estimates in each of the trailing four quarters, the average surprise being 12.98%.BorgWarner Inc. BWA has an Earnings ESP of +11.20% and a Zacks Rank #3 at present. The company is set to release second-quarter 2025 results on July 31. The Zacks Consensus Estimate for BWA's to-be-reported quarter's earnings and revenues is pegged at $1.04 per share and $3.52 billion, respectively. BWA beat earnings estimates in each of the trailing four quarters, the average surprise being 15.74%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BorgWarner Inc. (BWA) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report Lear Corporation (LEA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
16-07-2025
- Automotive
- Yahoo
Winners And Losers Of Q1: O'Reilly (NASDAQ:ORLY) Vs The Rest Of The Auto Parts Retailer Stocks
As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the auto parts retailer industry, including O'Reilly (NASDAQ:ORLY) and its peers. Cars are complex machines that need maintenance and occasional repairs, and auto parts retailers cater to the professional mechanic as well as the do-it-yourself (DIY) fixer. Work on cars may entail replacing fluids, parts, or accessories, and these stores have the parts and accessories or these jobs. While e-commerce competition presents a risk, these stores have a leg up due to the combination of broad and deep selection as well as expertise provided by sales associates. Another change on the horizon could be the increasing penetration of electric vehicles. The 5 auto parts retailer stocks we track reported a mixed Q1. As a group, revenues beat analysts' consensus estimates by 1%. Luckily, auto parts retailer stocks have performed well with share prices up 24.4% on average since the latest earnings results. O'Reilly (NASDAQ:ORLY) Serving both the DIY customer and professional mechanic, O'Reilly Automotive (NASDAQ:ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers. O'Reilly reported revenues of $4.14 billion, up 4% year on year. This print fell short of analysts' expectations by 0.9%. Overall, it was a mixed quarter for the company with full-year EPS guidance exceeding analysts' expectations but a miss of analysts' EBITDA estimates. Brad Beckham, O'Reilly's CEO, commented, 'We are pleased to report a solid start to 2025, highlighted by a 3.6% comparable store sales increase, which was at the high end of our expectations for the quarter. Our comparable store sales increase was comprised of solid growth in both professional and DIY, which grew mid-single digit and low-single digit, respectively, in the first quarter. We are confident in the strength of the fundamental demand drivers in our business, and our Team's strong execution continues to generate share gains. I would like to express my appreciation to each of our over 93,000 Team Members for their hard work and unwavering dedication to our business and customers.' O'Reilly delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $91.25. Is now the time to buy O'Reilly? Access our full analysis of the earnings results here, it's free. Best Q1: Advance Auto Parts (NYSE:AAP) Founded in Virginia in 1932, Advance Auto Parts (NYSE:AAP) is an auto parts and accessories retailer that sells everything from carburetors to motor oil to car floor mats. Advance Auto Parts reported revenues of $2.58 billion, down 6.8% year on year, outperforming analysts' expectations by 3.1%. The business had a strong quarter with an impressive beat of analysts' EPS estimates and full-year EPS guidance exceeding analysts' expectations. Advance Auto Parts delivered the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 98.2% since reporting. It currently trades at $62. Is now the time to buy Advance Auto Parts? Access our full analysis of the earnings results here, it's free. Slowest Q1: Monro (NASDAQ:MNRO) Started as a single location in Rochester, New York, Monro (NASDAQ:MNRO) provides common auto services such as brake repairs, tire replacements, and oil changes. Monro reported revenues of $295 million, down 4.9% year on year, exceeding analysts' expectations by 1.3%. Still, it was a softer quarter as it posted a significant miss of analysts' EBITDA estimates and a significant miss of analysts' gross margin estimates. Interestingly, the stock is up 19.2% since the results and currently trades at $15.22. Read our full analysis of Monro's results here. Genuine Parts (NYSE:GPC) Largely targeting the professional customer, Genuine Parts (NYSE:GPC) sells auto and industrial parts such as batteries, belts, bearings, and machine fluids. Genuine Parts reported revenues of $5.87 billion, up 1.4% year on year. This result beat analysts' expectations by 0.5%. Overall, it was a strong quarter as it also put up a solid beat of analysts' EBITDA estimates and an impressive beat of analysts' gross margin estimates. The stock is up 8.7% since reporting and currently trades at $121.51. Read our full, actionable report on Genuine Parts here, it's free. AutoZone (NYSE:AZO) Aiming to be a one-stop shop for the DIY customer, AutoZone (NYSE:AZO) is an auto parts and accessories retailer that sells everything from car batteries to windshield wiper fluid to brake pads. AutoZone reported revenues of $4.46 billion, up 5.4% year on year. This number surpassed analysts' expectations by 1.1%. Aside from that, it was a slower quarter as it logged a miss of analysts' EBITDA estimates and a slight miss of analysts' gross margin estimates. AutoZone delivered the fastest revenue growth among its peers. The stock is down 3.5% since reporting and currently trades at $3,697. Read our full, actionable report on AutoZone here, it's free. Market Update As a result of the Fed's rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed's 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump's victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Sign in to access your portfolio
Yahoo
01-07-2025
- Business
- Yahoo
1 Magnificent Stock-Split Stock to Buy Hand Over Fist in July and 1 to Completely Avoid
Stock-split euphoria has played an important role in sending Wall Street's major stock indexes higher. Wall Street's most enticing stock-split stock in July offers a unique distribution model and has repurchased almost 60% of its outstanding shares since 2011. Meanwhile, another skyrocketing stock-split stock is rife with red flags, including no sales and a going concern warning. 10 stocks we like better than O'Reilly Automotive › Though artificial intelligence (AI) has been the hottest innovation on Wall Street for well over two years, it's not the only trend that's helped power Wall Street's major stock indexes to record-closing highs. Excitement surrounding stock splits in some of the market's most influential businesses has been pivotal in sending the broader market higher. A stock split is a tool publicly traded companies have available that allows them to cosmetically alter their share price and outstanding share count by the same factor. This adjustment is cosmetic in the sense that it doesn't alter a company's market cap or in any way affect underlying operations. When a public company announces its intent to conduct a split, it can increase or decrease its share price. However, Wall Street's perception of these two options is quite different. Investors typically shun reverse splits, which increase a company's share price while simultaneously reducing its share count by the same magnitude. Companies that need to increase their share price are often doing so to avoid a delisting from a major U.S. stock exchange. In other words, reverse splits tend to come from struggling businesses. On the other hand, investors prefer companies announcing and completing forward stock splits. This type of split reduces the share price to make it more nominally affordable for everyday investors who can't buy fractional shares through their broker. Businesses enacting forward splits have a knack for out-innovating their competition. Furthermore, businesses conducting forward splits have historically outperformed the benchmark S&P 500. According to an analysis from Bank of America Global Research, since 1980, public companies completing forward splits have averaged a 25.4% return in the 12 months following their announcement. That compares with an 11.9% average return for the S&P 500 over the same timeline. Whereas more than a dozen prominent companies, many of which were in the AI arena, announced forward splits in 2024, only a small number of companies have done so this year. Interestingly enough, all major stock splits in 2025 have come from outside the tech sector. As we steam ahead into July, one magnificent stock-split stock from the "Class of 2025" can be purchased hand over fist, while investors should completely avoid another highflier. Though a few high-quality, non-tech companies have recently undertaken forward splits, the one that makes for the smartest buy in July is auto parts supplier O'Reilly Automotive (NASDAQ: ORLY). Following the close of trading on June 9, O'Reilly completed a 15-for-1 forward split, which reduced its share price from nearly $1,400 to closer to $90. One of the best aspects of O'Reilly Automotive's operating model is that it's generally recession resistant. While auto parts aren't on the same level of necessity as food and beverages, drivers and mechanics continue to need auto parts and accessories to keep vehicles running regardless of how well the U.S. economy and stock market are performing. Even though discretionary purchases may ebb and flow with the health of the U.S. economy, O'Reilly's operating cash flow tends to be highly predictable year after year. In terms of macro catalysts, O'Reilly and its peers are benefiting from the aging of America's cars and light trucks. The latest annual report from S&P Global Mobility, a division of the more familiar S&P Global, shows the average age of cars and light trucks on U.S. roadways expanded to 12.8 years in 2025, up from an average of 11.1 years in 2012. A combination of higher auto loan interest rates (compared with four years ago), the potential for President Trump's tariff and trade policy to increase new-vehicle pricing, and the aging of America's cars and light trucks, points to O'Reilly Automotive's potential to play an increasingly larger role in keeping existing vehicles running well. The company's hub-and-spoke distribution network is another reason that helps explain why shares of O'Reilly have risen more than 55,000% since its debut in 1993. O'Reilly closed out 2024 with 31 regional distribution centers that were surrounded by almost 400 hub stores. These hub stores are capable of getting more than 153,000 stock-keeping units to its local stores on a same-day or overnight basis. In short, the products drivers and mechanics need are pretty much always within reach. But perhaps the most notable aspect of O'Reilly Automotive as an investment has been its share-repurchase program. Since kicking off aggressive stock buybacks in 2011, the company has spent close to $26 billion through March 31, 2025, retiring over 59% of the company's outstanding shares. For a company with steady or growing net income, such as O'Reilly, these buybacks are meaningfully boosting its earnings per share. While O'Reilly Automotive stock isn't going to go parabolic as we've witnessed from select AI stocks, it does have the foundational catalysts needed to deliver meaningful long-term gains for its shareholders. However, not every stock-split stock is necessarily worth buying, which is the case with clinical-stage traditional Chinese medicine (TCM) company Regencell Bioscience Holdings (NASDAQ: RGC). Regencell took Wall Street by storm through the first five months and change of 2025. Based on its closing price on June 17, shares of the company were up more than 60,100% on a year-to-date basis, with the company's market cap clocking in at more than $38 billion. This mammoth return is what compelled Regencell to enact a 38-for-1 forward split, which became effective after the close of trading on June 13. Even though shares of Regencell Bioscience have retraced by more than 75% from its year-to-date high, they could easily fall by another 90% and still be considered expensive. Regencell is an early stage clinical TCM business that has just 12 employees, only four of which are involved with research and development. The company isn't anywhere close to the commercialization stage as of yet, which means it's burning cash, losing money, and sports a going concern warning (i.e., it doesn't have sufficient capital to cover its expected costs over the coming 12 months). In 2024, the company reported a comprehensive loss of just over $4.3 million. On top of being nowhere close to generating sales and operating cash flow, Regencell's risk factors notes the company hasn't "demonstrated the ability to successfully complete large-scale, pivotal research studies." What's more, risk factors indicate that in-house intellectual property (IP) agreements with existing employees that aren't covered by patents may not protect its IP. To round things out, there isn't a long-term catalyst that explains or can sustain this monstrous move higher in its valuation. Short interest has remained relatively low, which removes the possibility that a short squeeze will send Regencell stock higher. This looks to be nothing more than a speculative momentum stock -- and speculative moves higher rarely have staying power. With more shares outstanding following Regencell Bioscience's forward split, trading liquidity will improve and it'll be considerably harder for speculative momentum-driven investors to drive its stock artificially higher. Taking into account its dismal near-term operating prospects, it wouldn't be a surprise to see Regencell stock eventually fall back below $1 per share. Before you buy stock in O'Reilly Automotive, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and O'Reilly Automotive wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $966,931!* Now, it's worth noting Stock Advisor's total average return is 1,062% — a market-crushing outperformance compared to 177% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Bank of America is an advertising partner of Motley Fool Money. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Bank of America and S&P Global. The Motley Fool has a disclosure policy. 1 Magnificent Stock-Split Stock to Buy Hand Over Fist in July and 1 to Completely Avoid was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-06-2025
- Automotive
- Yahoo
Better Stock-Split Stock: Fastenal, O'Reilly Automotive, or Interactive Brokers?
Fastenal is the easy pick for income investors among these three stock-split stocks. Value investors probably won't like any of these stocks, although Interactive Brokers has the lowest forward earnings multiple. Growth investors will likely prefer O'Reilly Automotive. 10 stocks we like better than O'Reilly Automotive › On the surface, Fastenal (NASDAQ: FAST), O'Reilly Automotive (NASDAQ: ORLY), and Interactive Brokers Group (NASDAQ: IBKR) might seem to have practically nothing in common. Fastenal is a leader in the distribution of industrial and construction supplies, especially fasteners. O'Reilly operates a chain of after-market auto parts stores. Interactive Brokers runs a popular online brokerage. But these three stocks share at least one common denominator. They've each announced stock splits this year. Fastenal conducted a 2-for-1 stock split on May 22. O'Reilly had a 15-for-1 stock split on June 9. Interactive Brokers split its stock 4-for-1 on June 17. Which of these three stock-split stocks is the best pick for investors now? Here's how Fastenal, O'Reilly, and Interactive Brokers compare. O'Reilly Automotive leads the pack on some key financial metrics. The company generated revenue of $16.87 billion over the last 12 months, well above Fastenal's $7.61 billion and Interactive Brokers' $5.4 billion. Unsurprisingly, it also posted the greatest profits. But when it comes to profitability, based on net profit margin, the three stocks are neck-and-neck. Fastenal comes out slightly ahead, though, with a net profit margin of 15.1% versus O'Reilly's and Interactive Brokers' net profit margins of 14.1% and 14.7%, respectively. Interactive Brokers appears to claim the strongest balance sheet. Its cash position of nearly $89.7 billion is more than five times greater than its debt of $17.15 billion. Fastenal's and O'Reilly's debt loads are larger than their cash stockpiles. There's no contest between these three stock-split stocks on current growth. Interactive Brokers' revenue jumped 18.6% year over year in the first quarter of 2025, with earnings soaring 21.7%. The growth delivered by Fastenal and O'Reilly pales in comparison. Fastenal's net sales rose by 3.4% year over year in Q1. Its earnings edged only 0.3% higher. O'Reilly reported revenue growth of 4%, with earnings declining by 1.6%. What about future growth? O'Reilly comes out on top, at least according to analysts surveyed by LSEG. Wall Street projects the auto parts chain to deliver earnings growth of 12.5% next year, higher than the estimates of 9.8% earnings growth for Fastenal and 7.3% growth for Interactive Brokers. Which stock is valued most attractively depends on how far you look into the future. Interactive Brokers has the lowest trailing 12-month price-to-earnings ratio and forward P/E multiple (which looks ahead one year). However, O'Reilly boasts a lower price-to-earnings-to-growth (PEG) ratio (which is based on analysts' five-year earnings growth projections) than Fastenal. LSEG didn't provide a PEG ratio for Interactive Brokers. As we have already seen, though, analysts seem to think that O'Reilly will deliver stronger earnings growth going forward. It's an easy decision in crowning a dividend winner among these three stocks. Fastenal takes the prize with its forward dividend yield of 2.13%. The construction and industrial parts distributor has also increased its dividend for an impressive 27 consecutive years. Interactive Brokers' forward dividend yield is a puny 0.63%. The online brokerage has increased its dividend for only two years in a row. O'Reilly doesn't currently offer a dividend. Your investment style will dictate which of these stock-split stocks is the best choice for you. If you're an income investor, Fastenal is the easy pick. Value investors probably won't find any of these stocks very appealing. However, I view O'Reilly Automotive as the most attractively valued of the three. My opinion is based largely on O'Reilly's stronger growth prospects, which make it the best option for growth investors. Since O'Reilly wins in two areas, I also think it's the best overall pick. By the way, the stock splits for Fastenal, O'Reilly, and Interactive Brokers make no difference whatsoever in which stock to buy. All the splits do is make the respective share prices lower, but they don't impact the underlying businesses at all. Before you buy stock in O'Reilly Automotive, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and O'Reilly Automotive wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $676,023!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,692!* Now, it's worth noting Stock Advisor's total average return is 793% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group. The Motley Fool recommends the following options: long January 2027 $175 calls on Interactive Brokers Group and short January 2027 $185 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy. Better Stock-Split Stock: Fastenal, O'Reilly Automotive, or Interactive Brokers? was originally published by The Motley Fool
