Aftermarket auto parts retailer AutoZone’s (AZO) stock price performance has been impressive over the past months, bolstered by increasing demand for auto parts, especially from the growing used car market. Is AZO a major player in the automotive parts market? Continue reading to learn more. Shares in AutoZone, Inc., the United States’ largest automotive accessories and parts retailer, have increased 46.1% and 42.5% respectively over the last year. Moreover, in terms of the nine months’ performance, the stock has gained 41.6%. AZO hit its 52-week high of $1738.78 in yesterday’s trading session. The main factor contributing to this impressive rally is the company’s bottom-line growth, aided by the rising demand for auto parts thanks to a booming used car market.

The used car market is expanding faster than ever before as supply chain problems have caused new car production to decrease. According to Edmunds’s research, the average transaction price (ATP) for used vehicles climbed to $25,410 in the second quarter of 2021 compared to $20,942 in the same period last year, marking the highest quarterly used ATP Edmunds has on record.

For used cars to continue running smoothly, they must be maintained. To avoid additional costs when buying new cars, owners of used cars have invested in their cars’ repairs and maintenance. AZO sees a growing need for aftermarket parts due to lower new car production.

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