How a Motor Oil Shortage Could Affect AZO, ORLY, AAPL, & GPC Stocks

The world is facing an oil shortage due to the war in Iran, as the Strait of Hormuz remained closed on Tuesday. This has sparked concerns that reserves across various countries will start to run out, as the source of 20% of the world’s oil remains blocked. That supply issue could also cause problems for automotive parts retail companies, such as AutoZone (AZO).

A leaked internal memo connected to AutoZone warned employees that the chain could suffer due to a motor oil, diesel oil, and specialty automotive fluids shortage. This memo directly related a possible motor oil shortage to the Middle East. It also highlighted that this could result in low product supplies, increased prices, and oil substitutions to meet consumer demand.

While the memo may come from AutoZone, it isn’t the only company that could suffer as a result of a motor oil shortage. Several other companies in the auto parts retail category, including O’Reilly Auto (ORLY), Advance Auto Parts (AAP), and Napa Auto Parts parent company Genuine Parts Company (GPC), could also have to deal with negative consequences from the war in Iran.

Auto Parts Retailers’ Stock Movements Today

Auto parts retail companies experienced a wide array of movements today, including:

• A slight dip for AutoZone stock.
• A 0.71% rally for O’Reilly Auto stock.
• A nearly 1% fall for Advance Auto Parts stock.
• A 1.12% drop for Genuine Parts Company stock.

AZO vs. ORLY vs. AAP vs. GPC: Which Auto Parts Stock Do Analysts Favor?

Turning to the TipRanks stock comparison tool, traders can see which of these auto parts retail stocks analysts prefer. AZO and ORLY have the best consensus ratings at Strong Buy, followed by a Moderate Buy for GPC, and a Hold for AAP. Looking at upside potential, GPC offers the highest at 49.16%. However, each of these stocks has significant upside potential.