Toronto, Ontario -- This week's Tuesday Ticker takes a closer look at the performance of several of the most valuable publicly traded companies in the automotive aftermarket sector. In recent weeks, several market leaders have seen their shares decline while others have been able to secure mild gains.
LKQ Corporation, a Chicago-based distributor of recycled, aftermarket and specialty automotive parts valued at about US$7.8 billion, slipped as investors reacted to news it had hired Bank of America to run a sale of its Keystone specialty-parts division while facing fresh activist pressure to divest its European arm. Shares fell from about US$31.59 on Nov. 3 to roughly US$30.55, a drop of about US$1.04 or 3.3 percent, as the market absorbed declining organic revenue and scaled-back guidance.
O’Reilly Automotive, the Springfield, Missouri retailer of automotive replacement parts with a market value of roughly US$83.4 billion, edged higher on steady gains in its professional installer business, which continued to outpace peers and support investor confidence. Shares moved from roughly US$98.70 on Nov. 3 to about US$99.16, a rise of about US$0.46 or 0.5 percent.
Advance Auto Parts, a Raleigh-based automotive parts retailer and distributor worth about US$3 billion, posted mixed movement after stronger-than-expected quarterly earnings were overshadowed by a cut to full-year guidance tied to higher interest and supply-chain costs. Shares rose from about US$48.10 on Nov. 3 to roughly US$49.54, up about US$1.44 or three percent.
Genuine Parts Company, the Atlanta distributor of automotive and industrial replacement parts with a market value near US$17.7 billion, drifted slightly lower as investors weighed modest automotive growth against ongoing concerns about execution risks and the company’s expanding industrial-parts mix. Shares moved from about US$128.50 on Nov. 3 to roughly US$127.10, down about US$1.40 or 1.1 percent.
AutoZone, the Memphis-based retailer and distributor of aftermarket car and truck parts valued at roughly US$64.2 billion, ticked higher as the stock benefited from a recent analyst upgrade despite a revenue miss, inflationary pressure on DIY customers and tighter competition in the pro channel. Shares rose from about US$3,705 on Nov. 3 to roughly US$3,861.72, a gain of about US$157 or 4.2 percent.
