AZO - These 2 Auto Supply Stocks Could Benefit From Inflation -- Here's How
If you have shopped for a new vehicle recently, you have probably had a much different experience than in prior years. The days of haggling to a price substantially lower than the manufacturer's suggested retail price (MSRP) are long gone, and consumers are instead paying well over the sticker price in most cases. According to NBC News, 82% of buyers paid more than $700 above the MSRP in January.
With this in mind, many Americans will likely be holding on to their current vehicles longer, and this could significantly benefit retail parts suppliers like AutoZone (NYSE: AZO) and O'Reilly Automotive (NASDAQ: ORLY) .
The inflation rate in the U.S. reached 7.5% in January 2022, the highest it has been in 40 years as measured by the consumer price index (CPI). There are several reasons for this occurrence. One is that COVID-19 has crimped the supply chain, and the recent omicron variant has exacerbated these issues. While the variant appears to be fading fast, the supply chain will take longer to smooth out.
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These 2 Auto Supply Stocks Could Benefit From Inflation -- Here's How