Aftermarket auto parts retailer AutoZone’s (AZO) stock price performance has been impressive over the past months, bolstered by increasing demand for auto parts, especially from the growing used car market. Is AZO a winner in the auto parts industry? Keep reading to find out.Shares of the largest aftermarket automotive parts and accessories retailer in the United States, AutoZone, Inc. (NYSE:AZO), have gained 46.1% over the past year and 42.5% year-to-date. Moreover, in terms of the nine months’ performance, the stock has gained 41.6%. AZO hit its 52-week high of $1738.78 in yesterday’s trading session. The main factor contributing to this impressive rally is the company’s bottom-line growth, aided by the rising demand for auto parts thanks to a booming used car market.
Over the past months, the used car market has been expanding like never before, as new car production dwindled due to supply chain issues. According to Edmunds’s research, the average transaction price (ATP) for used vehicles climbed to $25,410 in the second quarter of 2021 compared to $20,942 in the same period last year, marking the highest quarterly used ATP Edmunds has on record.
Used cars require repairs to keep running. Also, people owning cars invested in repairs and maintenance to avoid add-on spending in buying new cars. The growing demand for aftermarket auto parts bodes due to lower production for new cars bodes well for AZO.