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Pep Boys - Manny, Moe & Jack Message Board

  • gaga9xxx gaga9xxx Dec 6, 2011 12:16 PM Flag

    AZO at $341 Trounces Pepboys

    Autozone is certainly the premier leader in auto parts and its stock shows it.

    Puny little PBY's stock price is less than the earnings of AZO.

    Should little pathetic PBY just throw in the towel and give up?

    The workers aren't doing enough to keep this puppy afloat.

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    • It isn't the workers, as much as a rather stale brand, IMHO. They can leave Manny, Moe, & Jack in the board room, behind closed doors. Start with a new name, logo, promote the selling of parts for later model cars, i.e., a more modern company. I believe that this is all it would take. I think image is nearly everything in this case. After all, the products sold are virtual commodities. It might take a few years to kick into gear but they've got the sector, locations, product lines, etc. I mean, where was Autozone 10-15 years ago. I remember when the stock was $26. I obviously made a mistake not buying it, but that's the way it goes. PBY can still compete but they've got to work on the old image, IMHO.

      • 1 Reply to skepticpencil
      • I actually don't think PBY can compete are parts, at least not the DIY area, as AZO and Advance swamp them in volume and PBY really can't make money competing on price.

        I like the strategy of moving towards tire & service centers. Let's face it, with margins on tires around 30%, but the service and add-ons (wheel balancing, valve stems, alignments) all being pretty much profit, it's a solid market.

        Maybe down the road they'll try and re-address parts, but for now I think they're on the right path with the tire and service model.

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