Why Auto Parts Stocks Fell Last Month
Shares of auto parts retailers, including Advance Auto Parts (NYSE: AAP), AutoZone (NYSE: AZO), and Genuine Parts Company (NYSE: GPC), the owner of NAPA auto parts stores, all fell by double digits in January. There was no major news out on these companies, but a combination of analyst downgrades and valuation concerns pushed the sector down as analysts worried about warm winter weather, slowing economic growth, and stretched valuations.
According to data from S&P Global Market Intelligence, Advance Auto Parts fell 17.7%, AutoZone lost 11.2%, and Genuine Parts gave up 11.9% during January. The chart below shows the trajectory of each stock during the month. As you can see, the three stocks largely traveled in tandem.
Source Fool.com
