Meet the 1 Stock I'd Buy With $500, Even If the Market Fell 5% Tomorrow
The market just had its worst day since April 2025. Here's a consumer stock worth buying with $500 anyway.
In the midst of a market downturn, the article suggests investing in O'Reilly Automotive (ORLY) with $500, even if the broader market experiences a 5% drop the following day. The reasoning behind this recommendation is that the company's earnings will grow over time, making the initial 5% drop insignificant. O'Reilly Automotive specializes in selling car parts to mechanics and DIY enthusiasts at over 6,000 stores, and its business tends to improve when the economy is struggling.
The company has seen a 7.2% increase in third-quarter comparable store sales, a 5.6% gain year-over-year, and a 9% overall sales increase to $5.1 billion. O'Reilly has also raised its full-year comparable sales outlook to between 5.5% and 6.5%. The company has opened 173 new stores this year, aiming for 225 to 235 stores, expanding into Mexico and Canada.
O'Reilly has repurchased $1.03 billion in stock in a single quarter, reducing the share count by over half over the past 15 years, which has helped increase earnings per share. With a stock price around $90, $500 would buy five shares of O'Reilly. While the stock is not cheap, the company's consistent growth in comparable sales for 33 consecutive years makes it an attractive investment.
The article advises buying shares of this business rather than waiting for the market to signal safety, emphasizing that the company sells products that people cannot postpone or avoid.
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