However, even with the impediments retail auto part stocks are facing, I don't see the companies going anywhere or experiencing substantial downsides for a number of years.ORLY is probably the best pick out of the three, but I'm personally not interested in any of them.Electric vehicles often cost the same as, if not more than, a gasoline-powered car, are very expensive to repair, and come with expensive maintenance items such as battery replacement.These elements would ordinarily disincentivize consumers to purchase electric vehicles, unless gas prices are much higher.AAP experienced a progressive dip until late 2017 - a decline largely attributed to missed analyst earnings projections, market share loss, and costly restructuring efforts.The company was hit the hardest amongst its retailer peers, experiencing a 42% stock price decline in the early part of 2017.
Particularly weak third-quarter earnings reports dating back to November 2015 initiated a stock pitfall of more than -16%, which proved inescapable as the stock continued to perform poorly through 2016-2017.
The company is comprised of four subsidiary names, including Advance Auto Parts, CARQUEST, WORLDPAC, and Autopart International.
In addition to its physical store locations, the company also offers a well-designed website where customers can purchase automotive products online.
The only downsides to the company are its high price-to-book value of 36.1 (as compared to the industry standard of 22-25) and relatively high debt-to-capital ratio ( billion in liabilities relative to .2 billion in assets).
The high debt is not overwhelmingly concerning - what is more troubling is ORLY's low cash liquidity (a characteristic consistent with its industry peers).
AMZN will be the most realistic and apparent threat to automotive part retailers - it just has yet to concentrate its efforts on this sector.