O'Reilly Automotive, AutoZone hit record highs after Trump's planned auto tariffs

OReilly Automotive

27/03/2025 17:34

Updates stock activiity, adds analyst commentary

** Shares of auto parts retailers O'Reilly Automotive ORLY.O and AutoZone AZO.N climb to record highs and are among top S&P 500 .SPX performers on Thurs after Trump's latest tariffs salvo

** ORLY stock up 3%, and AZO shares jump nearly 4%; peer Advance Auto Parts AAP.N rallies >7% to about 1-mth high

** U.S. President Donald Trump on Weds said he would impose 25% tariffs on all imported vehicles and foreign-made auto parts imported into the country, sending shares of automakers such as General Motors GM.N and Ford F.N tumbling

** In research note, JP Morgan said it expects the parts and services business to gain from higher prices and increased traffic as consumers keep their cars longer

** Last week, DA Davidson upgraded AZO, saying co is inflation/tariff beneficiary since higher prices have historically been passed through to customers in margin neutral way, with little loss of volume

** With moves on the session, ORLY and AZO up 20% and 19%, respectively, YTD vs 3% decline in the SPX

** Despite the gain on Thurs, AAP down 14% in 2025

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))