qr-play-store play store

Concerns over a weak demand in the automotive sector remain

25 Sep 2017
No comments
653 views
Concerns over a weak demand in the automotive sector remain

Even though the shares of US car retailers rose this September, analysts predict that longer-term concerns over the threat of eccomerce and weak demand in the sector remain. O’Reilly Automotive rose on Monday, up 2.7 per cent to $215.15. It outperformed the broad S&P 500 index which weakened 0.2 per cent to 2,496. The Dow Jones Industrial Average also traded down 0.2 per cent at 22,296 on Monday in New York, while the Nasdaq Composite shed 0.9 per cent to 6,370. Genuine Parts, which distributes replacement car parts, saw the biggest gains of any stock in the S&P 500 on Monday, rising 6 per cent to $93.22 on news that it has agreed to buy Europe-based Alliance Automotive Group for $2bn. Used car retailer CarMax and auto parts retailers AutoZone and O’Reilly are up 10.6 per cent, 10.4 per cent and 9.7 per cent, respectively, for the month. The uptick comes following signs of improved trading for the sector. Earlier this month, AutoZone and CarMax both reported quarterly results that beat analyst estimates.

 


 

The moves have helped propel the auto retailing sub-index of the S&P 500 up 8.8 per cent this month. But the index remains down over 20 per cent for the year. Investors remain wary about headwinds from weak demand and the rise of e-commerce. Broader retail — from malls to grocery stores — have all felt the impact of changing consumer trends and growing online sales, with auto parts retailers failing to escape the fears of decline for bricks and mortar stores. “Near term there has been some dissipation of the concern around Amazon and ecommerce more broadly. It still lingers in the intermediate term,” said Ben Bienvenu, an analyst at Stephens Inc. “But it’s enough for some investors to step back in.” The sector’s underperformance this year has been driven by a warm winter resulting in less damage to cars — cutting the need for replacement car parts — coupled with the looming threat of e-commerce’s encroachment on retail, say analysts.

 

Hurricane’s Harvey, Irma and Jose that have torn through vast swaths of the US, could create some short term need for repairs to cars that could boost auto retailers fortunes. But Mr Bienvenu voiced scepticism over the impact recent hurricanes would have.

0 0
Comments:
No comments found
Leave a comment
  • Jaw-dropping deals this Spring at RepoKar
    27 Feb 2017

    Spring is right around the corner! With melting snow comes rising car sales. Longer days and brighter sunlight mean it’s the season to think about the best used cars for spring; vehicles that allow you to appreciate blue skies, while getting a head start to summer. The sooner you decide on your dream car, the greater the possibility of finding the best deals.  At RepoKar, we want to be sure that you've got everything you need to start the season fresh with a smile on your face. That’s why we’ve prepared amazing, hassle free used cars, trucks, and SUVs for our fr...

    0 2
    18
    1039099 views
  • General Motors to lay off 1,100 workers
    06 Mar 2017

    General Motors promised us other things but that’s how it all turned to be, even if it said it will invest $1 billion in U.S. factories now it announced to temporarily cut off 1,100 workers in May as its Lansing Delta Township assembly plant in Michigan shifts production to Tennessee. Last year it added 800 jobs at its spring hill, Tennessee plant to build the new version of GMC Acadia SUV.  The Lansing plant will continue building the Buick Enclave and Chevrolet Traverse after it retools for a month. GM also has announced other U.S. factory cuts. U.S. President Donald Trump ha...

    0 0
    19
    105696 views
  • Subaru Ascent: the New Family Vehicle of the Year
    11 Sep 2018

              Did you ever doubt that Subaru won't produce anything new this year and would just improve other models? We have good news for you! Subaru Ascent's new 8-seat crossover rises above the crowd and tops the lists of the most expected crossovers in 2019.          With flexible seating for up to eight passengers, standard Symmetrical All-Wheel Drive, and up to 5,000 pounds of towing capacity, the family-sized 2019 Ascent makes every day an adventure. The appearance of the model corresponds to the classic image of a massive SUV and ...

    0 0
  • Ready For Fall: Buy A Car From RepoKar Online Auto Auction
    29 Aug 2018

    Summer has officially come to an end. It won’t be long before the weather goes from post-summer comfort to a little brisker and icky. A good car will help traveling more comfortable and more fun. RepoKar can help you get the car.  At RepoKar, you’ll find great autumn car deals for sedans, SUVs, and pickup trucks. As the nation’s largest online auto auction, RepoKar is available in all states and can be accessed from your computer or your phone. Here you will find vehicles at competitive and affordable prices. You'll also meet our helpful team of experts. We make...

    0 0
Search on the blog
Find us on

Last added auctions

2012 Ford ESCAPE
1485 views
19 photos
3,400.00
No bids
2012 Nissan MURANO
2679 views
13 photos
3,500.00
No bids
2000 Honda CR-V
2101 views
12 photos
1,200.00
No bids
2012 Mazda MAZDA3
2409 views
16 photos
2,500.00
No bids