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Advance Auto vs Autozone: Which Is the Better Auto Repair Stock?

15 November 2018 No Comment

Don’t sleep on auto repair stocks! Read more to see a comparison of Advance Auto vs Autozone and decide for yourself which one should make your investment list!

What are you doing to save for your future? Investing in stocks aren’t just for old guys in suits. These days, if you’ve got some extra income, you should look at investing in the stock market.

Where do you start though? One strategy is to invest in companies that you are familiar with and compliment your other interests. This will help you stay engaged and active with your investing.

If you are into cars, investing in automotive repair shops is one way to go. We are going to help you get started by comparing two the biggest. We will look at Advance Auto vs AutoZone.

Advance Auto vs AutoZone

Auto repair stocks may not have the “cool factor” that tech stocks have. But that doesn’t mean you shouldn’t discount them.

People are keeping their cars longer and longer, which means that they are doing more repairs on them. These stores provide a valuable resource so that auto owners can buy parts and make the repairs and modifications themselves.

Advance Auto Stock

Let’s start with the big picture. If you had bought 1 share of stock back in 2002 when Advance Auto first went public you would have spent $16.11.

That one share of stock today would be worth $133.41. Don’t get discouraged that you missed the boat, the best way to make money investing is to just get started.

Looking to the Future

The Advance Auto stock is priced at the high end of the industry at 23 times its earnings. The industry average is about 20 times the company earnings.

The positive here is that the company is showing growth. The company also announced that they are starting a stock buyback program that could end up valuing about $600 million.

AutoZone Stock

If you had bought one share of stock in 1992 when AutoZone went public for $16.97 it would have a value of $704.40 today.

Looking to the Future

Right now, AutoZone is trading at 16 times its earnings. That means it is performing on par with the industry standard.

The company has been fulfilling its performance promises this year, which bodes well for future stability and growth. Low gas prices and the increase in car ownership length means the company should continue to do well.

Start Investing in Auto Repair Stock

When comparing Advance Auto vs AutoZone stock, you need to also consider the market as a whole. While the companies show strong growth right now, the industry is dependent on the economy, gas prices, and new auto sales.

As you can see from the long-term historical growth, you may be able to be successful in growing your investment. But understand that this is a very long-term commitment, and you are risking your investment in the interim.

If you decide to invest your savings in auto repair shops, keep a close eye on the stock’s performance.

Be sure to know these 6 ways to monitor the companies you own stocks in.

 

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