Meet the Market Outperformer That Doubled the S&P 500's Total Return in the Past 5 Years (Hint: It's Not an AI Stock)

The S&P 500 index has generated a total return of 84% in the past five years (as of April 24). This is no doubt a solid performance. Investors who are trying to beat this might assume that they need to own an artificial intelligence (AI) business to do so, as this mega tech trend has driven markets in recent years.

There is an aftermarket auto parts retail stock, however, that proves that winners can come from all industries. It has soared 162% since late April 2021, nearly doubling the widely followed benchmark's gain.

Image source: Getty Images.

A simple playbook continues to work wonders

Investors will realize that boring companies with easily understood operating models can work extremely well. O'Reilly Automotive (NASDAQ: ORLY) is the perfect example. As of Dec. 31, 2025, the business operated 6,447 stores nationwide (with a small presence in Mexico and Canada). It sells car supplies to DIY consumers and professional customers. It's as simple as that.

Opening new locations is key to the company's success. It added 207 net new stores to the footprint in 2025. Management is aiming for 225-235 more openings in 2026.

A larger store count has, unsurprisingly, boosted the top line over time. And O'Reilly has an incredible streak going, as 2025 was its 33rd straight year reporting same-store sales growth and record revenue. This highlights how durable and stable its demand is, regardless of the economic environment.

What matters most to this company's staying power is that people can't live without working vehicles. There's a sense of urgency if your car breaks down. This is true whether we're in boom times or a recession.

Additionally, the average age of vehicles in the U.S. continues to rise, increasing the need for maintenance and repairs. Americans also drive more miles each year, generating wear and tear that necessitates a visit to O'Reilly's stores.

Investors need to pay up for quality

O'Reilly's net income climbed 173% in the past 10 years. But its diluted earnings per share are up an even better 386%. Management's capital allocation strategy plays a role.

After reinvesting in the business, excess cash is used to aggressively buy back stock. The outstanding share count shrunk 44% between 2015 and 2025. This directly affects per-share earnings positively.

Investors who want to own this stock can do so while it's trading 14% below its record high. However, this is not a bargain opportunity. The price-to-earnings ratio of 31.4 isn't cheap, but the valuation has fallen over the past seven months.

Those investors who care most about owning the highest-quality businesses will probably still consider buying O'Reilly shares, given its stellar track record of capital compounding.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.