Zacks Industry Rank Analysis Highlights: Motorcar Parts & Accessories and Dorman

Zacks

For Immediate Release

Chicago, IL – March 26, 2014 – Stocks featured in this week’s Zacks Industry Rank analysis include Motorcar Parts & Accessories (MPAA-Free Report) and Dorman (DORM-Free Report).

Zacks Industry Rank Analysis is written by John Blank, PhD, Chief Equity Strategist, Zacks.com.
 
Auto Parts Staying in Overdrive
 
As icy roads from this epic U.S. winter thaw, more people and businesses will be hitting the highway, with the demand for auto replacement parts in tow. Last week, original equipment manufacturing for auto and truck replacement parts (AUTO/TRUCK-REPL) was shining at the #1 rank on the Zacks Industry List. You can’t do better than that!
 
This industry of 8 companies recently saw 12 positive revisions to annual earnings estimates compared to 4 negative revisions. Positive earnings surprises have been averaging a strong +20%. Of course, downward earnings surprises are present. However, the sector has signaled a turn for the positive, and a couple businesses seem to have the green light.
 
We’ve seen this trend reflected in a downstream part of the auto value chain -- Retail/Wholesale Auto Parts. This is a six-company industry also at a #1 rank on the Zacks Industry Rank this week. With a continued build in play for cyclical auto spending, the picture is one with important indicators of strong and broad demand trends. That will drive future positive earnings estimate revisions.
 
Significant upward revision of the Zacks Rank within an industry group, changing from a Hold to either a Buy or Strong Buy rank, is a sound signal when looking for investment advantages. Using knowledge of recent positive earnings estimate revision activity by company analysts in the know provides that key insight.
 
Look closely at the following summaries of two high Zacks Rank candidates. Each was selected based on its current Zacks Rank #1 (Strong Buy) or Zacks Rank #2, and a recent revision from Zacks Rank #3 (Hold).
 
Your profits could mirror these successes. Those returns may be closer than they appear.
 
Motorcar Parts & Accessories (MPAA-Free Report): With a stunning 29% YTD return, these shares have been a momentum play in 2014. It’s a Zacks Rank #1 stock in a Number One Zacks Ranked Industry. What more is there to say? The last three earning beats were +47%, +33% and +50%.  
 
This company is a leading manufacturer of replacement alternators and starters for imported and domestic cars and light trucks in the U.S. and Canada. The company's full line of alternators and starters are remanufactured for vehicles imported from Japan, Germany, Sweden, France and Korea. The imported vehicles for which the company remanufactures alternators and starters also include vehicles produced by GM, Chrysler and Ford.
 
Dorman (DORM-Free Report): With a 7% return YTD, this Zacks Rank #2 company has been delivering in a sideways market. For 2015, analysts look for +15% annual EPS growth on +9% revenue growth. For a U.S. company, that’s an "outperform" story. Dorman beat or met quarterly earnings in eight of the last ten quarters.
 
This company is a leading supplier of Dealer "Exclusive" automotive replacement parts to the Automotive Aftermarket and Mass Merchandise markets. Dorman automotive parts and hardware are marketed under the OE Solutions, HELP, AutoGrade, First Stop, Conduct-Tite, Pik-A-Nut and Scan-Tech brand names.
 
Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of the industries and the stocks poised to outperform the market. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2564.
 
About Zacks
 
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Len Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3:1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit From the Pros by going to http://at.zacks.com/?id=2565.
 
Follow us on Twitter:  http://twitter.com/zacksresearch
 
Join us on Facebook:  http://www.facebook.com/ZacksInvestmentResearch  
 
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
 
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
 
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
 
Contact: Terry Ruffolo 
Company: Zacks.com
Phone: 312-265-9213
Email: pr@zacks.com
Visit: www.Zacks.com

Read the analyst report on MPAA

Read the analyst report on DORM


Zacks Investment Research

Rates

View Comments (0)