Despite Market Weakness, These Growth Stocks Continue to Shine
August has been off to a shaky start for the broader U.S. stock market. On August 1st, the S&P 500 slipped 1.6%, weighed down by weak jobs data and growing concerns over potential new import taxes.
Yet, not all stocks have followed the downward trend. O’Reilly Automotive (NASDAQ: ORLY) and Genius Sports (NYSE: GENI) have managed to defy the market’s pullback, continuing their upward momentum. Wall Street analysts are optimistic about their future performance, projecting potential gains of 15% to 20% over the next 12 months.
1. O’Reilly Automotive: Built for Long-Term Growth
O’Reilly Automotive, a dominant name in the U.S. auto parts market, has seen its stock climb 35% since late 2024. According to analysts like Steven Zaccone at Citigroup, the rally may not be over. On July 25, he raised his price target to $1,114 per share, implying a 15% upside from current levels.
So, what’s driving investor confidence?
O’Reilly’s scale is a key advantage. With more than 6,000 locations nationwide, it’s second only to AutoZone in terms of market presence. Its widespread store network allows it to negotiate better deals with suppliers and ensure faster product delivery, especially for professional mechanics, a customer base that appreciates speed and reliability.
In the first half of 2025 alone, sales to professional repair shops grew 7.9% year over year. This consistency has been rewarding—an investment of $2,500 in O’Reilly 30 years ago would be worth over $1 million today.
While such exponential growth may not repeat, O’Reilly’s entrenched market position and dependable business model still make it a solid bet for long-term investors aiming to outperform the broader market.
2. Genius Sports: Data-Driven Growth in a Digital Era
If you’ve noticed sports broadcasts getting more data-intensive, you’re not alone. Genius Sports is one of the driving forces behind this transformation. The company is a key provider of live sports data used by sportsbooks and media outlets across the globe.
Since late 2024, Genius Sports stock has surged 35%, and Wall Street sees more room to run. Truist analyst Barry Jonas issued a buy rating and a $14 price target on July 1, suggesting a potential 20% upside from its August 1 closing price.
Despite being smaller than its main rival, Sportradar, Genius has carved out a strong niche through strategic partnerships. Most notably, in June, the company renewed its exclusive deal with the NFL, securing rights to distribute real-time statistics and betting data.
This long-term partnership positions Genius for significant revenue growth. Management forecasts a 21% increase in sales this year, but profits are growing even faster. In Q1, Genius more than doubled its gross profit margin to 24.4%, and EBITDA is projected to hit $125 million—a 46% year-over-year jump.
Risks Remain for Genius Sports Investors
While Genius Sports shows strong growth potential, investors should be cautious about its high valuation. At nearly 52 times forward earnings, the stock is priced for perfection.
Should the company fail to meet growth expectations, investors could face steep losses. Therefore, Genius is best suited for investors with higher risk tolerance, who are comfortable with volatility in pursuit of potentially outsized returns.
Still, as part of an emerging duopoly in sports data, Genius may have the runway to grow into its valuation over time. The company’s foothold in a fast-expanding digital sports ecosystem makes it a stock to watch closely.
Final Thoughts: Two Stocks With Room to Run
Despite current market jitters, O’Reilly Automotive and Genius Sports stand out as growth stories with unique competitive advantages. From O’Reilly’s dominance in the auto parts aftermarket to Genius Sports’ position in real-time sports data, both companies are capitalizing on long-term trends that could drive further gains.
According to Wall Street’s latest projections, these high-momentum stocks could climb another 15% to 20%, making them compelling opportunities for investors looking to add growth to their portfolios in August.
As always, investors should weigh potential returns against risk tolerance—but these two names certainly warrant a closer look.
Reference : Cory Renauer