2 Stock-Split Stocks: One Has Up to 22% Upside in 2026, According to Select Wall Street Analysts, and the Other Stock Is Completely Off of Wall Street's Radar

O'Reilly Automotive (ORLY) and Coca-Cola Consolidated (COKE) recently conducted significant stock splits (15-for-1 and 10-for-1, respectively) after substantial long-term share price appreciation. While O'Reilly is favored by analysts like TD Cowen, who project 21% upside and strong EPS growth, its valuation at 38 times earnings is deemed stretched and a 30-year high for the auto parts retailer. Conversely, Coca-Cola Consolidated, despite being largely ignored by Wall Street, is presented as a potentially superior long-term investment due to its steady business, focus on internal profitability enhancements, and a more reasonable valuation compared to O'Reilly's premium.

Analysis

O'Reilly Automotive (ORLY) and Coca-Cola Consolidated (COKE) recently executed significant stock splits (15-for-1 and 10-for-1, respectively) following impressive 10-year share price appreciation of 497% and 473%. These splits, occurring in June and May 2025, reflect management's response to high stock prices, aiming to increase share accessibility without altering underlying company valuation.

Analysts, including TD Cowen, are bullish on O'Reilly, setting a $125 price target implying 21% upside by late 2026, supported by projected 2026 EPS growth of 14% to $3.30. However, this target suggests a 38x earnings multiple, which is considered "pricey" and would represent a 30-year high valuation for the auto parts retailer. Despite consistent operating margins of 19% and EPS boosted by share repurchases, this valuation raises concerns for a business characterized as "low-growth."

In contrast, Coca-Cola Consolidated, despite its strong long-term performance, remains largely uncovered by Wall Street. The company focuses on internal investments, such as a $90 million facility upgrade in 2025, to enhance profitability and generate substantial cash flow. This strategy, combined with a "far more reasonable" valuation, positions COKE as a potentially superior long-term investment compared to ORLY, despite less flashy growth prospects.

Key Decisions for Investors

• Investors should exercise caution regarding O'Reilly Automotive's current valuation, as the implied 38x earnings multiple from analyst targets appears stretched for its growth profile and represents a historical high.
• Consider Coca-Cola Consolidated as a potential long-term value play, given its reasonable valuation, consistent cash flow generation, and strategic investments in operational efficiency, despite its lack of prominent Wall Street coverage.
• Evaluate both companies based on their respective risk-reward profiles, prioritizing COKE for its valuation appeal and steady business model over ORLY's higher growth projections coupled with significant valuation premium.