The automotive sector faces a lot of uncertainty in the next few years. It's far from certain whether a post-COVID-19 world will usher in a gradual recovery in the auto sector, or a protracted downturn. So fir investors, it makes sense to prepare for a range of scenarios.
However, I think three automotive stocks have the potential to snap back after the coronavirus pandemic is contained. Here's why.
Probably the two most important factors determining revenue growth at auto-parts retailers are the average age of vehicles on the road in the U.S., and the average number of miles driven. Older cars tend to require more repair, and the more cars are driven, the more they also require repair -- both good signs for auto-parts sellers.