attract additional business. The company checks for problems during oil changes and offers to fix them. Many of Monro’s competitors are small independents or franchisees. Its company-owned structure provides for better quality control, giving it a reputation for getting repairs right the first time as well as allowing it to charge a little more for services. “If it’s done right the first time,”says Wilson, “most people don’t mind paying 3% more.”
CID WILSON Stock Picks
|
Company Exchange: Symbol |
Price |
12-to 18-Month Price Target |
P/E on Projected 2006 Earnings |
Est. 5-Yr. Annual EPS Growth Rate |
Why Stock Will Outperform |
| Keystone Automotive Industries Inc.(NASDAQ: KEYS) | $38.15 | $48.00 | 20 | 25.0% | Large distribution network allows Keystone to get parts to customers faster than smaller players. |
| O’Reilly Automotive Inc. (NASDAQ: ORLY) | 32.51 | 47.00 | 19.9 | 20.0 | Half of the company’s business comes from auto repair shops, making it less dependent on foot traffic. |
| Advance Auto Parts Inc. (NYSE: AAP) | 43.01 | 53.00 | 17.4 | 17.0 | Size gives it buying power and upscale appearance attracts higher-income consumers who are willing to spend more. |
| Monro Muffler Brake Inc. (NASDAQ: MNRO) | 33.84 | 40.00 | 18.3 | 15.0 | Monro Muffler uses low-cost oil changes to attract business; company-owned structure provides quality control and better service. |