Investing in auto parts stocks can be a profitable venture, but you need to do your homework first. You should know about the companies you are investing in, the products they produce, and the industries they serve.
LKQ stock
LKQ is a leading global distributor of non-OEM automotive parts. Founded in 1998 in the United States, LKQ has grown to include distribution of specialty auto equipment, refurbished collision products, and new parts, as well as purchase of salvage automobiles. Today, LKQ operates approximately 1,700 facilities worldwide.
The company’s EBITDA is $1.7 billion. It’s also the largest non-OEM distributor in the world. Its latest dividend was paid on 1 December 2022 to shareholders who purchased by the ex-dividend date. The company recently reported a strong third quarter, and is expected to deliver earnings per share of $0.34 in the current fiscal year.
It’s difficult to value LKQ, but the company’s impressive product line and strong balance sheet make it a worthy investment. The company’s largest business is distributing salvage automobile parts, including door assemblies, mechanical parts, and transmissions. The company also distributes refurbished collision products, towing hitches, truck bed covers, and recreational vehicle air conditioners. The company also offers a wide selection of other vehicle-related products such as brake pads, steering and suspension products, and specialty auto equipment.
Magna International (MGA) stock
Whether you’re a long-term investor or a short-term speculator, Magna International (MGA) stock is a great value pick. With a solid Zacks Rank #3, the stock is a top choice for value investors.
The company provides vehicle engineering services and parts to original equipment manufacturers. Its product lines include exteriors, powertrain, tooling, and interiors. In addition, it also provides vehicle electrification and micromobility solutions.
Magna International’s recent earnings estimates have been disappointing. Currently, analysts expect the company to report adjusted earnings of $4.528 per share for the current fiscal year. For the quarter ended September 30, the company missed analysts’ earnings estimates by -$.52. But the company had 17.0% year-over-year quarterly sales growth.
Advance Auto Parts (AAP) stock
Founded in 1932, Advance Auto Parts is a leading North American provider of automotive replacement parts, accessories, and services. It serves both professional and do-it-yourself markets. The company sells a range of replacement parts, such as batteries, tires, engine parts, exhaust systems, and performance parts. It also offers accessories, such as brakes, brake pads, and clutches.
Advance Auto Parts operates a large network of retail locations throughout the United States. Its stores carry a variety of brand name parts. In addition to these brand name parts, it also offers a wide selection of OEM parts. In addition, it operates a number of self-service e-commerce sites. It has a growing presence in the Western United States.
Goodyear Tire & Rubber (GTY) stock
During the Great Depression, the rubber industry was hit particularly hard. The tyre industry saw a massive reduction in output, leading to widespread layoffs. It was the Great Depression that prompted General Tire to diversify its holdings. It started with a purchase of Yale Tire and Rubber in 1931. In 1929, the company operated 14 retail stores and had a 1.8 percent market share.
Goodyear partnered with a Chinese firm to create a joint venture in Dalian, China. This was not without its own set of pitfalls. China Tire Holdings of Hong Kong has challenged the validity of the deal.
Goodyear’s stock took a 1.7% hit on Tuesday, the day of the announcement. The company had already reported a $332.4 million loss for the first nine months of 2003. It was also the subject of an SEC investigation that sent its stock tumbling. The company also announced a new $650 million loan arranged by JPMorgan and Citigroup. The company said the loan would help it meet short-term operating costs, but it did not explain how much money it will save.
O’Reilly Automotive (ORLY) stock
During the past year, the stock of O’Reilly Automotive (ORLY) has performed better than its sector. The company is expected to produce a good return in the next few months. If you’re looking to buy a stock with a solid payment history and attractive dividend yield, you should consider investing in O’Reilly Automotive.
As an auto parts retailer, O’Reilly offers a wide selection of products for both domestic and imported vehicles. The company’s stores also offer check engine light code extraction, battery diagnostic testing, drum and rotor resurfacing, professional paint shop mixing, and custom hydraulic hoses.
O’Reilly is a dominant player in the automotive aftermarket industry. In terms of market share, O’Reilly has a nearly 50% market share in the North American auto parts industry. The company has been able to increase its gross margins, which indicates a sustainable competitive advantage. The company is able to negotiate better terms with its suppliers as it grows.