Investors keep a close track of the auto parts industry as it is considered one of the safest sectors to invest in, as the demand for auto parts usually remains unaffected by economic cycles. Despite not relying too much on new vehicle sales, the auto parts industry is expected to benefit from the demand for new vehicles, robust aftermarket sales, rising vehicle prices, and the increasing usage of advanced auto components.
While AutoZone, Inc. (AZO) possesses reasonable growth prospects, fundamentally strong auto parts stocks Miller Industries, Inc. (MLR), Standard Motor Products, Inc. (SMP), and Ituran Location and Control Ltd. (ITRN) look even better positioned than AZO to capitalize on the industry’s tailwinds. Therefore, it could be wise to buy these stocks now.
