Toronto, Ontario -- As cooler weather settles across North America, investor confidence in the automotive aftermarket has also cooled.
In the past two weeks, several U.S. industry leaders have seen their stock prices shift over the past two weeks, while Canadian auto‑parts makers and dealers are also navigating a changing market. The movements show how demand, company decisions, and the broader economy are shaping fortunes this autumn.
Companies in decline
The LKQ Corporation, headquartered in Chicago, Illinois, supplies replacement parts, accessories and service components to repair shops, collision centres, and specialty markets, saw its stock fall from US$32.45 ($42.70) on September 15 to US$30.27 ($41.15) on September 29, a drop of 6.7 percent.
Stock in Advance Auto Parts, which is headquartered in Raleigh, North Carolina, fell from US$64.17 (C$86.60) on September 15 to US$62.45 (C$84.30) on September 29, a decline of 2.7 percent. The drop reflects high restructuring costs, store closures and heavy debt, which have tempered investor optimism.
Monro,a tire, brake and general repair services company, saw its stock rise from US$17.37 (C$23.45) on September 15 to US$18.29 (C$24.70) on September 29, a gain of 5.3 percent. Stronger-than-expected sales at established stores and optimism about leadership changes helped push the stock higher.
Magna International (MG.TO), headquartered in Aurora, Ontario, designs and builds parts and systems for automakers worldwide. Its stock fell slightly from $64.56 (US$50.30) on September 15 to $64.40 (US$50.20) on September 29, a decline of 0.25 percent.
Linamar Corporation (LNR.TO), headquartered in Guelph, Ontario, manufactures driveline systems, engines, and industrial equipment. Its shares slipped from C$77.95 (US$60.75) on September 15 to C$77.31 (US$60.25) on September 29, a drop of 0.8 percent.
AutoCanada Inc. (ACQ.TO), headquartered in Edmonton, Alberta, operates a network of franchised dealerships across Canada. Its stock fell from C$35.12 (US$27.35) on September 15 to C$34.71 (US$27.05) on September 29, a decline of 1.2 percent.
On the upswing
Some U.S.-based auto parts companies managed to buck the trend -- though their gains were minuscule.
Memphis, Tennessee-based auto parts store AutoZone stock remained nearly flat, rising slightly from US$4,233.30 ($5,715.00) on September 15 to US$4,235.30 ($5,720.00) on September 29, an increase of 0.05 percent.
O’Reilly Automotive (ORLY), headquartered in Springfield, Missouri, retails and distributes automotive parts, tools, and supplies across the United States, Mexico, and Canada. Its stock inched up from US$106.30 ($143.50) on September 15 to US$106.81 ($144.30) on September 29, a gain of 0.5 percent.
