Most tech and growth stocks are a volatile play. This includes even the biggest names, considering the current interest rate environment.
That’s not to say they’re bad or good investments. It’s just something you have to accept if you want to trade these stocks. They can go up quickly – and go down just as fast.
Today’s stock is very different.
It’s a solid long-term growth stock that’s up by more than 220% over the past 5 years – but it has absolutely nothing to do with tech.
Rather than large up-and-down spikes, the stocks’ trajectory has more closely resembled a steady uphill climb.
It’s up over 40% over the past year (again, contrary to most tech stocks) – and is now sitting at near all-time highs.
If you’re looking for a steady growth play, this is one you should strongly consider.
O’Reilly Automotive, Inc. (ORLY)
O’Reilly Automotive is a leading auto parts retailer with over 6,000 stores across America. It began in 1957 as a single store in Springfield, Missouri – and steadily grew from there.
That has been the dominant theme of this company – steady growth, and it’s been reflected in its stock price. It’s not an exciting company that’ll make you sweat everytime you go and check its price. Rather, it’s a stable hold that will likely go up over time.
The company now boasts over $14 billion in revenue and over $2 billion in earnings. Its earnings per share has steadily increased – from under $0.18 per share in FY2019 to over $0.33 per share in FY2022. It has a highly attractive profitability profile, with a solid ability to consistently generate free cash flow.
In short, if you’ve gotten a little tired about all this talk about tech stocks… if you’re tired of the whipsawing they’re giving your portfolio (and your mental health) – give ORLY a shot. It’s boring, solid, stable growth.
To your wealth,
Felix @ Ace of Investing