Car Aftermarket Firms Gear Up

An auto-parts and car repair analyst at Standard & Poor's anticipates that business should begin warming up for car repair shops like Midas, Monro and retailers. "People aren't buying new cars, so they're fixing up their old cars," said Michael Souers. But all is not rosy.

With consumers cutting back on normal activities ... they're not driving as much, despite lower gas prices, analysts say. That means less wear and tear on vehicles and perhaps less need for parts and service.

... A teetering economy that shows no near-term signs of improving has frightened new-car buyers away, meaning drivers are keeping their old cars longer. But at the same time, that uncertainty has made many just as reluctant to spruce up or even repair their cars.

When so many sectors are contracting, the aftermarket industry at least shows forward movement.

Same-store sales are, at best, rising in the low single digits.

Read full details at Investor's Business Daily