qr-play-store play store

Concerns over a weak demand in the automotive sector remain

25 Sep 2017
755 comments
4144 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:
2022-05-17 19:27:55
purchase budesonide online - antabuse 250mg cheap disulfiram 500mg brand
2022-05-17 11:35:33
coupon for cialis cialis pills sale buy cialis uk
2022-05-16 08:32:57
writing dissertation for dummies online dissertation help buy custom dissertation writing service
2022-05-16 07:14:31
fildena us - sildenafil 100mg cheap ivermectin for sale online
2022-05-15 14:17:43
top dissertation writing service doctoral dissertation improvement grant dissertation methodology
  • 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...

    4 6
    36854
    1723873 views
  • Buy a car at RepoKar this Winter
    25 Nov 2017

    With winter on its way, the roads can be dangerous because it dries slower and road visibility as well as battery failure can also be hazardous. It’s time to start thinking about how you can make your daily drive safer and stress-free. That doesn’t necessarily mean you should buy an SUV or crossover to survive the season. Plenty of sedans and wagons provide qualities that can keep you safe in sleet and snow. These medium-sized vehicles also help you save at the pump! But what actually matters here is choosing the right place to buy a car from. There are several options on the marke...

    1 5
    11582
    938902 views
  • Diesel Cars VS Electric Cars
    17 May 2019

    Between loyal customers and car dealers lie an important dilemma that begs for an answer - What is the future of diesel cars and electric vehicles? Today at RepoKar, we are ready to tackle this predicament.Auto manufacturers and the combustible industries have often mentioned the idea that electric cars are worse for the environment than diesel and gasoline-powered vehicles because they are powered by dirty electricity.If we want to talk about fuel efficiency, noise pollution, and air quality, then EVs are clearly the outright winner. But if we're talking about torque or initial price, the...

    0 3
    11724
    457627 views
  • Fire Risk: BMW Recalls 185,000 Cars TODAY
    19 Apr 2019

    The recall expansion covers 3 Series, 5 Series and Z4 models from the 2006 model year. The problem has been traced to irregularities in the manufacturing process that could allow moisture to occur near the PCV valve heater and lead to a short circuit. The PCV valve is an emissions device that keeps pollutants created by an engine from being released into the atmosphere. It also helps keep the engine oil clean and prevents crankcase pressure from building up. BMW warns its customers to stop driving the vehicle if there is smoke coming from the engine, or if the driver smells smoke or plast...

    3 3
    1587
    57148 views
Search on the blog
Find us on

Last added auctions

2012 Ford ESCAPE
39525 views
19 photos
3,400.00
No bids
2012 Nissan MURANO
40929 views
13 photos
3,500.00
No bids
2000 Honda CR-V
39531 views
12 photos
1,200.00
No bids
2012 Mazda MAZDA3
35625 views
16 photos
2,500.00
No bids