Their investors profit from aging cars

Article Excerpt

According to a recent study, the average age of a vehicle in the U.S. is roughly 12 years. That figure will likely continue to rise considering the strong initial quality of new cars. That trend is goods new for investors in these two stock, which cater to the used car market. We see one in particular as a good pick for your new buying. GENUINE PARTS CO. $97 is a buy. The company (New York symbol GPC; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 145.3 million; Market cap: $14.1 billion; Price-to-sales ratio: 0.7; Dividend yield: 3.1%; TSINetwork Rating: Average; www.genpt.com) is leading seller of replacement auto parts through 1,100 company-owned stores (under the famous NAPA banner) and independent outlets in North America, Europe, Australia and New Zealand. Genuine also distributes industrial parts, office products and electrical equipment. The company typically fuels its growth with acquisitions. It focuses on smaller businesses that its existing operations can easily absorb. That cuts the inherent risk of using…