Should You Invest in Advance Auto Parts?

PHOTO CREDIT: Advance Auto Parts

OVERVIEW

Advance Auto Parts Incorporation provides parts for cars, trucks, motorcycles, and several other motor vehicles. The parts that they offer allow their consumers to maintain vehicles by themselves instead of going into service shops. They offer everything from motor oil to specialized engines. The company was founded in 1929.

Why You Should?

  1. Advance Auto Parts operate over 4800 stores in the US. The US is one of their largest markets and its citizens rely on cars and other similar vehicles for transportation. This combination is why Advance Auto Parts is a great auto part company to invest in. More cars on the road will see the company report higher sales of their products.

Why You Should Not?

  1. The COVID-19 Pandemic has also reduced the demands of some of the company’s products. Fewer cars on the road will cause a decrease in demand as consumers do not need their vehicles to be maintained as frequently as before.

MY OPINION

I believe that individuals should put money into other stocks. Though this company benefits through its specialization in auto parts and wide reach, it still is hurt from newer cars which are harder to maintain by everyday consumers. Competition and the COVID-19 Pandemic has also hurt the company. However, the weak economic landscape may/may not impact the company.