Will Pep Boys Crash This Sector?

In today's edition of "Talking Stocks," Austin reacts to the news that Gores Group is pulling the plug on their offer to take over Pep Boys

This is a big indication of future weakness for other companies in this sector. While Gores Group may have seen something in particular about Pep Boys that scared them off, Austin thinks it was the right call. Automotive service and parts retailers had a great run over the last few years as consumers hung onto their cars longer and put off the expensive purchase of a new automobile. But now the levees look like they're about to burst as the average age of the automobile has hit an all-time high. The company is showing signs of strength, albeit at a slow pace. Austin thinks the sun has set on what's been a great sector over the last few years and automakers like Ford and General Motors sell increasingly more vehicles.

If you are looking for something different, though, then you should check out our new free report: "The Motley Fool's Top Stock for 2012." In it, our chief investment officer identifies his favorite company for 2012. To access the report before the rest of the market catches on, click here -- it's absolutely free.

Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Ford and Zipcar. Motley Fool newsletter services recommend Ford, General Motors Company, and Zipcar. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 1906318, ~/Articles/ArticleHandler.aspx, 8/1/2014 3:08:28 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement