Auto parts makers AutoZone (AZO) and O'Reilly Automotive (ORLY) are two stocks that am I currently watching extremely closely. These companies first came across my radar as they displayed impressive relative strength during the first part of 2022. I really like the fact that both of these stocks held above their 200-day moving averages as the market went into correction.
As you most likely know, there is currently a shortage of new cars due to the COVID-19 pandemic and semiconductor chip shortage. Because of this, there has been an increased demand for used cars. This bodes well for companies like AZO and ORLY which sell auto parts. I currently own AZO and will be keeping ORLY on my watchlist.
Risk right. Sit tight.
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Full disclosure: I currently own AZO.
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