On July 1 Equities.com spotlighted five companies that are a part of one of the fastest growing segments in American retail: auto parts.
The reason behind that industry's surge is directly tied to the recession the country is still working its way out of. Simply put, when the economy gets bad, people are less inclined to buy new, and are more inclined to try to fix up what they have. Hence a renewed focus on repair – and an increase in business for suppliers of DIYers and repair shops.
That souring economy had caused the five largest auto part chains in America to post massive gains over the last few years, and their impressive run had continued all through the first half of 2013.
Slowly but assuredly, the economy is improving, though. Jobs are increasing, spending is up, and the S&P is at an all-time high. With the economy back on its feet, we wondered: are companies that benefit from a sluggish economy (like auto parts retailers) doing okay?
Here’s how the five spotlighted auto parts stores have fared since their price at open on July 1:
The Memphis, Tenn.-based chain, which is also the largest in the country, currently sits at $464.08 a share, up from $423.88 for a 9.63 percent gain.
Advance Auto Parts (AAP)
The second-largest American auto parts retailer Advance Auto Parts has continued their highly impressive year, and led the pack of the five spotlighted companies. The auto parts retailer is at $99.34 a share, up from $81.99 last time we checked in, for a 21.31 percent gain.
O’Reilly Auto Parts (ORLY)
The Springfield, MO chain is one of the fastest growing in America, and has posted significant gains over the last few years. It’s currently trading at $126.22 a share, up 10.01 percent since we last checked in on July 1.
Genuine Parts Company (GPC)
Genuine Parts posted the biggest gains first time we checked in, having gained over 30 percent in the first half of 2013. They’ve cooled quite a bit in the second half, and have only notched a 3.74 percent gain since July 1 to hit $82.75 a share.
The Pep Boys – Manny, Moe & Jack (PBY)
Upstart the Pep Boys has continued their march upwards, and is up 13.31 percent since the middle of the year to hit $13.37 a share.