Plenty of Roadway for Auto-Parts Retailers
Despite a recent sales-growth slowdown, we remain positive on narrow-moat AutoZone, Genuine Parts, Advance, and O’Reilly over the longer run.
Liang Feng: The auto-parts retailers began 2014 with the wind at their backs. Since last year's harsh winter weather added to vehicle wear and tear and increased aftermarket demand, all four of the auto-parts retailers that we cover have performed well as a result--with AutoZone (AZO) and Genuine Parts (GPC) up over 5% and Advance (AAP) and O'Reilly (ORLY) up over 15%.
However, sales have begun to decelerate as the weather tailwind diminished. And many investors have grown concerned that rising new vehicle sales could reverse the aftermarkets growth.
Liang Feng does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
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