Auto suppliers have “vroom” to grow

Email to a Friend

With gas prices down more than $1 from a year ago, the roads are expected to be particularly heavy in summer 2015, according to AAA.

Drivers have to be particularly careful about maintenance during this time. “Heat is the biggest drain on a car’s battery,” says Michael Calkins of AAA. “Heat also is the biggest [reason for] underinflated tires.”

Moreover, the average age of U.S. vehicles that were on the road in 2014 was a record-high 11.4 years, according to market-research group IHS. Older vehicles typically require more maintenance.

Two analysts whom we interviewed agree that all of the above bodes well for auto-parts suppliers. In particular, they like AutoZone (NYSE: AZO; Price: $667.39) and O’Reilly Automotive (Nasdaq: ORLY; Price: $214.97) because of their market presence and customer service.