Which auto parts stock is more worth buying?Via stock news

© Reuters. O’Reilly Automotive and AutoZone: Which auto parts stock is more worth buying?

In view of the global shortage of semiconductor chips leading to the increase in the price of new cars, people choose to repair existing vehicles or buy second-hand cars. Therefore, the aftermarket auto parts industry has strong demand. Therefore, we believe that auto parts O’Reilly (ORLY) and AutoZone (NYSE:) should benefit. But let us now find out which stocks are more suitable to buy. Please keep reading. O’Reilly Automotive, Inc. (NASDAQ:) in Springfield, Missouri, and AutoZone, Inc. (AZO) in Memphis, Tennessee, are the two most popular companies in the auto parts industry. ORLY is a specialized retailer of automotive aftermarket parts, tools, supplies, equipment and accessories. The company sells new and remanufactured automotive hard parts, maintenance items, and other accessories to do-it-yourself (DIY) and professional service providers. AZO is a professional retailer and distributor of automotive replacement parts and accessories. Its store offers a product line of cars, sport utility vehicles, vans and light trucks.

Due to the global shortage of semiconductor chips forcing companies to postpone the production of new cars, new car prices continue to rise. In this context, people either buy used cars or repair existing vehicles, and the aftermarket auto parts industry is in strong demand. According to a report by Reportlinker.com, by 2027, the global automotive aftermarket industry is expected to grow to US$562 billion at a compound annual growth rate of 3.6%. Therefore, both ORLY and AZO should benefit from the industry’s tailwinds.

In the past three months, AZO has risen by 5.8%, while ORLY has risen by 13.3%. In terms of performance over the past six months, ORLY is a clear winner, with a gain of 30.3%, while AZO’s return is 29.2%. But, which stocks are better choices now? Let us find out.

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About the Author: Agnes Zang