Analysts on auto part retailer stocks

Of Reuters-surveyed analysts, about 50%, 71%, and 55% recommend “buy” for AutoZone (AZO), O’Reilly Automotive (ORLY), and Advance Auto Parts (AAP) stock, respectively, while 45%, 29%, and 45% recommend “hold.” Only AutoZone received “sell” recommendations, from 5% of analysts.

Comparing Analysts’ Views on Auto Part Sellers This Month

Earnings trends

On November 13, Advance Auto Parts reported a ~32.2% (year-over-year) rise in its third-quarter adjusted earnings. During the quarter, the company’s revenue grew 4.3% YoY, while its operating profit surged by 12.5% YoY. Its same-store sales improved by 4.6%, better than the 2.8% improvement seen in the second quarter.

Similarly, O’Reilly Automotive’s diluted EPS rose 39.8% YoY in the third quarter, and its revenue rose 6.1% YoY. Its comparable-store sales growth rose 3.9%, compared with just 1.8% in the third quarter of 2017. AutoZone is scheduled to release its results for the first quarter of fiscal 2019 on December 4.

Price targets rose

As of November 28, analysts’ consensus target prices for auto part sellers (XLY) were as follows:

  • $827.76 for AutoZone stock, slightly below its market price of $833.70 but slightly higher than analysts’ target price of $800.72 last month
  • $357.84 for O’Reilly Automotive stock, slightly lower than its market price of $358.87 but higher than analysts’ target price of $338.79 last month
  • $195.65 for Advance Auto Parts, ~9.3% higher than its market price of $178.95

On November 26, General Motors (GM) announced plans to shut down five plants in North America and cut 15% of its workforce. To learn more, read Is GM Making Itself Great Again by Forgetting America? For the latest on automakers and auto part companies, visit Market Realist’s Automobiles page.

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