Why Advance Auto Parts Stock Soared in May
Shares in auto parts retailers Advance Auto Parts (NYSE: AAP) rose 15.2% in May, according to data provided by S&P Global Market Intelligence. The move marks a reversal of fortune for the sector, with O'Reilly Automotive and AutoZone also posting 8% and 12.5% gains, respectively.
The sector's rise is a consequence of a gradual resumption of activity in the economy, and specifically the amount of vehicle miles driven. When cars are driven more (particular older ones) they are subject to wear and tear. In addition, more miles driven means more likelihood of accidents. Both are good news for auto parts retailers.
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Source Fool.com
