The past year has been challenging for the auto industry due to supply chain snarls, high inflation, and high borrowing rates. However, auto sales are expected to rebound this year, with a growth of 9%. The auto parts industry is closely linked to the automobile industry. However, it is not entirely dependent on the sales of new vehicles.
The auto parts industry is recession-proof as the demand for auto parts remains stable irrespective of the economic cycle, unlike the sale of new vehicles, which gets affected by macroeconomic conditions. Thus, amid the macroeconomic uncertainty, I believe it could be wise for investors to buy high-growth auto parts stock AutoZone, Inc. (AZO).
AZO’s EPS and revenue surpassed consensus estimates in the second quarter. Its EPS came 12.5% above analyst estimates, while its revenue beat the consensus estimate by 3.8%.
AZO’s Chairman, President, and CEO, Bill Rhodes, said, “We are proud to report solid same-store sales growth on top of last year’s 13.8%. We could not have achieved these results without…
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