Best large-cap automotive stocks to invest in 2026

Large-cap automotive stocks represent established companies benefiting from steady vehicle demand, aftermarket parts growth, and evolving transportation trends. Are you looking for resilient automotive sector investments with proven business models and strong market positions?

O'Reilly Automotive is a leading specialty retailer of automotive aftermarket parts, tools, supplies, and accessories, serving professional mechanics and do-it-yourself customers across thousands of stores in the United States. AutoZone operates as America's largest retailer of automotive replacement parts and accessories, providing comprehensive automotive maintenance solutions through an extensive retail network. PACCAR is a global leader in the design, manufacturing, and distribution of premium commercial trucks under the Kenworth, Peterbilt, and DAF brands, serving customers worldwide.

These large-cap automotive companies combine established market presence with growth opportunities in vehicle services and parts distribution. For investors seeking exposure to the automotive sector through proven industry leaders, these are among the best large-cap automotive stocks for 2026.

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Before we dive into each company, let`s take a look at how your investment would have performed if you had invested in stocks mentioned in this article.

Now, let`s take a closer look at each of the companies:

  • O'Reilly Automotive (NYSE:ORLY)

    O'Reilly Automotive is a leading specialty retailer of automotive aftermarket parts, tools, supplies, and accessories throughout the United States of America. Founded in 1957 and headquartered in Springfield, Missouri, it serves both professional service providers and do-it-yourself customers nationwide in all fifty states. The company operates over six thousand stores across the United States, offering comprehensive parts availability and expert customer service to automotive professionals and everyday drivers.

    O'Reilly has expanded strategically through acquisitions and new store openings to maintain its dominant position in the automotive aftermarket industry sector. The company operates a dual-market strategy serving both wholesale and retail customers while leveraging advanced technology solutions effectively throughout operations. O'Reilly uses supply chain efficiencies and an extensive distribution network to remain competitive and deliver reliable service across the marketplace nationwide.

    O'Reilly Automotive financial statements

    Analysts recommendation: 1.52

    Financial Health

    • Return on assets (ROA): 13.76%
    • Return on equity (ROE): N/A
    • Return on investment (ROI): 35.13%

    Profitability

    • Gross margin: 51.59%
    • Operating margin: 18.77%
    • Net profit margin: 14.27%

    Growth

    • EPS (past 5 years): 17.85%
    • EPS (current): 2.97
    • EPS estimate (next quarter): 0.72
    • EPS growth (this year): 12%
    • EPS growth (next year): 11.33%
    • EPS growth (next 5 years): 10.45%
    • EPS growth (quarter-over-quarter): 11.94%
    • Sales growth (past 5 years): 10.48%
    • Sales growth (quarter-over-quarter): 7.8%

    💡 Why invest in O'Reilly Automotive?

    O'Reilly Automotive offers investors a proven business model with strong competitive advantages in the automotive aftermarket:

    • Extensive Store Network: With over 6,000 stores across 50 states, O'Reilly boasts unmatched geographical reach making it the preferred choice for car owners nationwide through consistent revenue streams and strong brand recognition across regions.
    • Dual Market Strategy: O'Reilly caters to both professional repair shops and DIY car enthusiasts through a diversified approach that mitigates risk and ensures steady income regardless of customer repair preferences or market conditions.
    • Strategic Technology Investment: Recognizing the evolving automotive landscape, O'Reilly invests in diagnostics tools and electric vehicle parts to stay relevant and ensure competitive positioning as vehicle technology continues to advance rapidly.
    • Growing DIY Demand: The rising trend of DIY car maintenance fuels demand for O'Reilly's products as more people choose to maintain their own vehicles, benefiting from this expanding market segment and growing customer base across the nation.

    🐌 Key considerations before investing in O'Reilly Automotive

    O'Reilly Automotive faces several challenges that investors should carefully consider before making investment decisions:

    • Parts Price Volatility: Fluctuations in auto parts and raw material prices can significantly impact O'Reilly's profitability, making monitoring of commodity price trends and supply chain disruptions crucial for maintaining healthy profit margins.
    • Intense Market Competition: Online retailers and other auto parts stores constantly vie for market share, challenging O'Reilly's dominant position and requiring awareness of industry trends and competitive strategies to maintain leadership.
    • Economic Cycle Sensitivity: Economic downturns can reduce consumer spending on car maintenance, impacting O'Reilly's sales and making it essential to monitor economic indicators and market conditions for stability during challenging periods.
    • Regulatory Compliance Burden: O'Reilly operates in a heavily regulated environment with complex regulations surrounding automotive parts and environmental standards, creating compliance risks and potential liabilities requiring monitoring.

    Final thoughts on O'Reilly Automotive

    O'Reilly's extensive store network, dual-market strategy, and technology investments create compelling opportunities for long-term investors seeking exposure to the automotive aftermarket sector. However, parts price volatility, intense competition, and regulatory requirements warrant careful consideration of both opportunities and risks involved in this market. O'Reilly's comprehensive inventory and dedicated customer service position it strategically despite ongoing industry challenges and competitive pressures across the automotive sector.

  • AutoZone (NYSE:AZO)

    AutoZone is America's largest retailer of automotive replacement parts, accessories, and maintenance products serving millions of customers across North America annually. Founded in 1979 and headquartered in Memphis, Tennessee, the company operates thousands of stores across the United States, Mexico, and Brazil. The retailer offers an extensive product line including new and remanufactured hard parts, maintenance items, and automotive accessories for all customers.

    The company's success stems from its extensive inventory, competitive pricing, and strong focus on delivering excellent customer service across all locations. AutoZone's commercial program provides credit and prompt delivery of parts and other products to local repair garages, dealers, and service stations. This dual focus on retail and commercial customers makes it a trusted and reliable destination for automotive parts and accessories across markets.

    AutoZone financial statements

    Analysts recommendation: 1.52

    Financial Health

    • Return on assets (ROA): 11.96%
    • Return on equity (ROE): N/A
    • Return on investment (ROI): 28.88%

    Profitability

    • Gross margin: 52.15%
    • Operating margin: 16.94%
    • Net profit margin: 12.78%

    Growth

    • EPS (past 5 years): 15.03%
    • EPS (current): 143.32
    • EPS estimate (next quarter): 27.55
    • EPS growth (this year): -4.6%
    • EPS growth (next year): 17.95%
    • EPS growth (next 5 years): 11.11%
    • EPS growth (quarter-over-quarter): -4.57%
    • Sales growth (past 5 years): 8.44%
    • Sales growth (quarter-over-quarter): 8.2%

    💡 Why invest in AutoZone?

    AutoZone offers compelling strengths for investors seeking exposure to the automotive aftermarket and long-term growth potential:

    • National Store Network: With over 6,000 stores across the US, AutoZone has unmatched geographical reach providing consistent revenue streams and a strong foundation for future growth in the automotive aftermarket industry and beyond.
    • Diversified Customer Base: AutoZone caters to both professional repair shops and do-it-yourself car enthusiasts, ensuring steady income streams regardless of shifting consumer repair preferences and evolving market trends across regions.
    • Adapting to Change: Recognizing the evolving automotive landscape, AutoZone ventures into areas like diagnostics tools and electric vehicle parts, ensuring competitive relevance as vehicle technology advances across global automotive markets.
    • DIY Market Focus: The rising trend of DIY car maintenance fuels demand for AutoZone`s products as more people choose to maintain their own vehicles, positioning the company well to benefit from this expanding market segment nationwide.

    🐌 Key considerations before investing in AutoZone

    AutoZone faces several headwinds in the automotive aftermarket that require careful consideration from potential investors:

    • Volatile Parts Demand: Fluctuations in overall car sales and economic conditions can directly impact the demand for replacement parts, affecting AutoZone`s profitability and market performance across operating regions in varying conditions.
    • Competition Heats Up: Established online retailers and other auto parts stores are constantly vying for market share, increasingly challenging AutoZone`s dominant position in the competitive automotive aftermarket landscape across markets.
    • Shifting Automotive Landscape: The rise of electric vehicles and autonomous driving technologies could disrupt the traditional automotive aftermarket industry, requiring significant strategic adaptation and business model adjustments.
    • Complex Inventory Challenges: Maintaining vast inventory across thousands of stores requires complex logistics and significant investment, making inventory management strategies and cost-saving measures crucial for sustained profitability.

    Final thoughts on AutoZone

    AutoZone`s national presence, diverse product offerings, and strong commitment to adaptation create compelling opportunities for investors seeking automotive aftermarket exposure. However, fluctuations in parts demand, rising competition, and the evolving automotive landscape require careful evaluation from potential long term investors. For investors seeking established automotive aftermarket leadership with strong brand recognition, AutoZone offers compelling and attractive long term investment prospects.

  • PACCAR (NYSE:PCAR)

    PACCAR Inc. is a global leader in the design, manufacturing, and distribution of premium commercial trucks under the Kenworth, Peterbilt, and DAF brands. Founded in 1905 and headquartered in Bellevue, Washington, PACCAR is a key player in transportation known for innovation and quality. The company also provides financial services, aftermarket parts, and advanced technology solutions to support its trucking operations across global markets.

    With a strong presence across North America, Europe, and other international markets, PACCAR produces heavy-duty and medium-duty trucks recognized for durability. The company has been investing heavily in electric, hydrogen fuel cell, and autonomous vehicle technologies to drive the future of sustainable transportation. By leveraging its advanced manufacturing capabilities and engineering expertise, PACCAR continues to lead the industry in producing high-performance commercial vehicles.

    PACCAR financial statements

    Analysts recommendation: 2.39

    Financial Health

    • Return on assets (ROA): 4.22%
    • Return on equity (ROE): 12.92%
    • Return on investment (ROI): 7.64%

    Profitability

    • Gross margin: 14.01%
    • Operating margin: 8.83%
    • Net profit margin: 8.35%

    Growth

    • EPS (past 5 years): 11.52%
    • EPS (current): 4.52
    • EPS estimate (next quarter): 1.07
    • EPS growth (this year): -35.9%
    • EPS growth (next year): 12.8%
    • EPS growth (next 5 years): -5.19%
    • EPS growth (quarter-over-quarter): -39.33%
    • Sales growth (past 5 years): 5.6%
    • Sales growth (quarter-over-quarter): -13.7%

    💡 Why invest in PACCAR?

    PACCAR demonstrates key strengths that make it an attractive investment in the commercial trucking sector in today's market:

    • Global Heavy-Duty Leader: PACCAR holds the number three position worldwide in the heavy-duty truck market, ensuring a significant share of the global trucking industry with consistent revenue streams and strong brand recognition across many markets.
    • Renowned Brand Diversification: With established brands like Kenworth, Peterbilt, and DAF, PACCAR caters to diverse customer preferences and regional demands while mitigating risk through broader market reach and geographic diversification.
    • Parts Services Network: PACCAR offers a vast network of dealerships and parts stores that generate recurring revenue streams beyond initial truck sales, creating a comprehensive ownership experience and enhancing customer loyalty over time.
    • Innovation Technology Focus: PACCAR prioritizes continuous improvement, investing in R&D to enhance fuel efficiency, safety features, and overall truck performance for sustained future success and growth throughout its global operations.

    🐌 Key considerations before investing in PACCAR

    Before investing in PACCAR, consider these headwinds that could impact performance and returns in the commercial trucking industry:

    • Industry Cyclical Nature: The demand for heavy-duty trucks is directly tied to economic conditions, and during economic downturns businesses tend to delay truck purchases, significantly impacting PACCAR`s sales and profitability globally.
    • Steel Price Fluctuations: The cost of raw materials like steel and aluminum can significantly impact PACCAR`s production costs and profit margins, creating earnings volatility during periods of material price fluctuations across markets.
    • Regulatory Landscape Challenges: Evolving regulations concerning emissions standards and fuel efficiency can necessitate costly modifications to PACCAR`s trucks, requiring significant investments in compliance and technology upgrades.
    • Trucking Industry Competition: Established players and emerging manufacturers are constantly vying for market share in the global trucking industry, intensifying competitive pressures and potentially impacting pricing power and margins.

    Final thoughts on PACCAR

    PACCAR`s global presence, iconic brands, and comprehensive parts network create compelling opportunities for investors seeking commercial transportation exposure and diversification. However, industry cyclicality, volatile commodity prices, and intensifying competition necessitate careful evaluation of market dynamics from potential long term investors. For investors seeking established commercial truck manufacturing leadership with strong market positioning, PACCAR offers attractive long term investment prospects globally.

  • Penske Automotive Group (NYSE:PAG)

    Penske Automotive Group, Inc. is a leading international automotive retailer headquartered in Bloomfield Hills, Michigan, operating a large network of dealerships across North America. Founded in 1990 by Roger Penske, the company has expanded significantly over the years and now operates hundreds of locations worldwide. Penske Automotive Group has grown to become one of the largest publicly traded automotive retailers, offering new and used vehicles and services.

    The company specializes in the sale of new and pre-owned vehicles, along with vehicle maintenance, repair services, and financing options for customers. Penske Automotive Group represents numerous well-known automotive brands, providing high-quality vehicles and customer service to a wide range of customers. With a focus on operational efficiency, strategic acquisitions, and customer satisfaction, Penske Automotive Group continues to expand its presence in the global automotive retail market.

    Penske Automotive Group financial statements

    Analysts recommendation: 2.23

    Financial Health

    • Return on assets (ROA): 4.67%
    • Return on equity (ROE): 17.36%
    • Return on investment (ROI): 10.08%

    Profitability

    • Gross margin: 16.4%
    • Operating margin: 3.63%
    • Net profit margin: 2.94%

    Growth

    • EPS (past 5 years): 21.07%
    • EPS (current): 14.13
    • EPS estimate (next quarter): 3.22
    • EPS growth (this year): -20.1%
    • EPS growth (next year): 2.11%
    • EPS growth (next 5 years): 3.6%
    • EPS growth (quarter-over-quarter): -4.72%
    • Sales growth (past 5 years): 5.61%
    • Sales growth (quarter-over-quarter): 0.6%

    💡 Why invest in Penske Automotive Group?

    Penske Automotive Group demonstrates key advantages that make it an attractive investment in the automotive retail sector:

    • Diversified Brand Portfolio: Penske offers a variety of new and used car brands across multiple premium and mainstream segments, reducing reliance on any single automaker and providing resilience against market fluctuations across regions.
    • Customer Service Excellence: Penske emphasizes a positive customer experience through comprehensive training programs and service standards, potentially leading to repeat business, brand loyalty, and higher customer lifetime value for the company.
    • Extensive Geographic Reach: Penske Automotive operates dealerships across the United States, Europe, and Canada, offering exposure to diverse markets and reducing regional economic risks through broad geographic diversification across regions.
    • Stable Recurring Revenue: The ongoing demand for car maintenance, parts sales, and service operations provides a steady and predictable stream of revenue for Penske, creating financial stability and cash flow consistency over the long term.

    🐌 Key considerations before investing in Penske Automotive Group

    However, investors should consider the challenges and risks facing Penske Automotive Group in the automotive retail landscape:

    • Auto Sales Cyclicality: Car sales are cyclical and can be impacted by economic downturns, interest rate changes, and consumer confidence, creating revenue volatility and unpredictable earnings patterns for automotive retailers across markets.
    • Intense Competitive Landscape: The auto dealership industry is competitive, with both franchised and independent dealerships vying for market share, potentially pressuring margins and requiring continuous investment in customer acquisition.
    • Manufacturer Incentive Dependence: Profitability can be influenced by manufacturer incentives offered to dealerships, creating dependency on external factors beyond direct control and potentially impacting financial predictability for the company.
    • Shifting Consumer Preferences: The growing popularity of electric vehicles and alternative ownership models could disrupt the traditional car dealership business model, requiring significant adaptation and investment to remain competitive.

    Final thoughts on Penske Automotive Group

    Penske Automotive Group`s focus on customer service and diversified brand portfolio paint a promising picture for long-term automotive retail investors. However, the cyclical nature of car sales, the competitive landscape, and manufacturer incentive dependence necessitate careful consideration before making any investment. Thorough research on Penske`s sales trends, dealership network, and overall economic conditions is crucial before adding them to your portfolio.

  • Ferrari N.V. (NYSE:RACE)

    Ferrari N.V. is a legendary luxury automobile manufacturer headquartered in Maranello, Italy, producing high-performance sports cars and racing vehicles recognized globally for excellence. Founded in 1939 by Enzo Ferrari, the company is renowned for producing sports cars that embody speed, elegance, and exclusivity. The company`s iconic brand has become synonymous with automotive excellence and prestige, representing the pinnacle of luxury automotive craftsmanship and innovation.

    Ferrari specializes in the design, manufacturing, and sale of luxury sports cars, including the Ferrari 488, F8 Tributo, and the hybrid-powered SF90 Stradale. The company is also a dominant force in motorsport, particularly in Formula 1, where it has enjoyed decades of success. With a focus on craftsmanship, innovation, and high-performance engineering, Ferrari continues to lead the luxury automobile industry, combining cutting-edge technology with timeless design.

    Ferrari N.V. financial statements

    Analysts recommendation: 1.77

    Financial Health

    • Return on assets (ROA): 13.93%
    • Return on equity (ROE): 43.7%
    • Return on investment (ROI): 26.35%

    Profitability

    • Gross margin: 51.68%
    • Operating margin: 28.25%
    • Net profit margin: 22.39%

    Growth

    • EPS (past 5 years): 17.04%
    • EPS (current): 10.65
    • EPS estimate (next quarter): 2.47
    • EPS growth (this year): -0.2%
    • EPS growth (next year): 9.44%
    • EPS growth (next 5 years): 12%
    • EPS growth (quarter-over-quarter): 9.31%
    • Sales growth (past 5 years): 11.37%
    • Sales growth (quarter-over-quarter): 3.8%

    💡 Why invest in Ferrari N.V.?

    Ferrari N.V. demonstrates compelling strengths for investors seeking exposure to the luxury automotive sector and long-term growth:

    • Strong Brand Equity: Ferrari possesses one of the world`s most powerful and recognizable brands in luxury automotive, commanding premium pricing for its vehicles and maintaining exceptional customer loyalty across global markets worldwide.
    • Limited Production Strategy: The company maintains exclusivity by strategically limiting production volumes, which contributes to high demand, premium pricing, and sustained brand desirability in the luxury automotive market globally.
    • Diversification Beyond Automobiles: Ferrari is expanding its luxury lifestyle offerings, including merchandise, experiences, and brand partnerships, to diversify revenue streams and capitalize on its iconic brand recognition globally.
    • Focus on Innovation: The company invests heavily in research and development to maintain technological leadership, introduce cutting-edge models, and advance hybrid and electric vehicle technologies for future growth and market relevance.

    🐌 Key considerations before investing in Ferrari N.V.

    Ferrari N.V. faces challenges that investors must evaluate before making investment decisions in the luxury automotive sector:

    • Economic Market Sensitivity: Luxury goods are often considered discretionary purchases, and economic downturns can significantly impact demand for high-end vehicles, affecting Ferrari`s sales and revenue performance across markets worldwide.
    • Competitive Luxury Landscape: The luxury automotive market is highly competitive, with other premium brands like Lamborghini, McLaren, and Porsche vying for customers and market share in the exclusive supercar segment across global markets.
    • Supply Chain Risks: Disruptions in the global supply chain can affect production schedules and increase costs, potentially impacting Ferrari`s ability to deliver vehicles on time and maintain profit margins in its manufacturing operations worldwide.
    • Regulatory Environment Challenges: The automotive industry is subject to various regulations, including emissions standards and safety requirements, which can impact product development costs and limit design flexibility for future models.

    Final thoughts on Ferrari N.V.

    Ferrari`s iconic brand, limited production strategy, and focus on luxury and performance make it an attractive option for premium automotive exposure. However, economic sensitivity, competition, supply chain risks, and regulatory challenges necessitate careful consideration before making any investment decision in the company. Thorough research on Ferrari`s product pipeline, expansion plans, and financial performance is crucial before adding the stock to your portfolio.

  • Copart (NYSE:CPRT)

    Copart is a leading global online vehicle auction company headquartered in Dallas, Texas, revolutionizing how vehicles are bought and sold through its innovative digital platform. Founded in 1982, the company has grown significantly and now operates across multiple continents worldwide and serves customers globally every day. Copart operates a vast network across North America, Europe, the Middle East, and Australia, facilitating salvage and clean-title vehicle sales.

    The company specializes in the auctioning of vehicles, including cars, trucks, motorcycles, and recreational vehicles, primarily through its online platform worldwide and globally. Copart's services cater to insurance companies, dealers, and individual buyers, offering both salvage and non-salvage vehicles for auction to customers worldwide and internationally. With advanced digital solutions and strong operational efficiency, Copart remains a dominant player in the global vehicle remarketing industry worldwide.

    Copart financial statements

    Analysts recommendation: 2.29

    Financial Health

    • Return on assets (ROA): 11.42%
    • Return on equity (ROE): 18.12%
    • Return on investment (ROI): 16.46%

    Profitability

    • Gross margin: 47.62%
    • Operating margin: 37.29%
    • Net profit margin: 34.24%

    Growth

    • EPS (past 5 years): 16.72%
    • EPS (current): 1.63
    • EPS estimate (next quarter): 0.39
    • EPS growth (this year): 10.8%
    • EPS growth (next year): 7.64%
    • EPS growth (next 5 years): 5.56%
    • EPS growth (quarter-over-quarter): 11.43%
    • Sales growth (past 5 years): 16.07%
    • Sales growth (quarter-over-quarter): 0.7%

    💡 Why invest in Copart?

    Copart presents fundamental strengths that position it well for investors seeking stable returns and growth prospects in the sector:

    • High Recurring Revenue: The demand for used auto parts and repairable vehicles remains constant across various economic cycles, providing Copart with a steady and predictable stream of revenue from insurance companies and dealers worldwide.
    • Network Effect Benefits: Copart's extensive network of facilities and online platform attract more sellers and buyers, creating a self-reinforcing cycle that strengthens their market position and competitive advantages over time in the industry.
    • Technology Innovation Focus: Copart prioritizes innovation in online auctions, vehicle inspection, and titling processes, improving operational efficiency and customer experience while reducing transaction costs across its platform.
    • Global Market Reach: Copart operates facilities across multiple countries including North America, Europe, and Australia, offering significant exposure to diverse markets and substantial potential for continued international expansion.

    🐌 Key considerations before investing in Copart

    However, investors should carefully consider the challenges facing Copart in its competitive market landscape before investing:

    • Economic Downturn Impact: Economic downturns can lead to fewer accidents and reduced car sales, potentially decreasing the supply of vehicles entering the salvage market and significantly impacting auction volumes and revenues for Copart worldwide.
    • Metal Price Fluctuations: The value of scrap metal, a key component of salvaged vehicles, can fluctuate significantly based on global commodity markets, directly impacting vehicle values and Copart`s auction revenues across markets.
    • Environmental Regulatory Compliance: The auto salvage industry is subject to strict regulations regarding environmentally safe vehicle dismantling and disposal, with potential regulatory changes increasing operational costs for the company.
    • Competitive Market Pressures: While Copart is a market leader, there are other established players in the auto salvage auction market, and competition could significantly intensify as digital platforms become more prevalent in the global industry.

    Final thoughts on Copart

    Copart`s technology focus, strong global network, and powerful market position create compelling opportunities for investors seeking significant exposure to the auto salvage segment. However, economic sensitivity, metal price volatility, regulatory compliance, and competitive pressures necessitate careful evaluation before making any investment decisions in the company. Copart combines digital innovation with operational excellence to deliver significant value for long-term investors seeking growth in the vehicle remarketing industry.

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