AutoZone (AZO) - Get Free Report and other auto-parts companies in the S&P 500 were climbing in an otherwise dismal trading day, after analysts at Credit Suisse said the sector is least-exposed to supply-chain disruption in China.
Shares of the Memphis company at last check were 3.5% higher at $1,097.50.
The spreading outbreak of the coronavirus, which originated in China, has severely hampered the global supply chain.
The investment firm said the auto-parts retailers were less exposed due to "slow turns and adequate inventory position currently."
Credit Suisse said the "biggest risk seems to be late spring shipments, and some seasonal categories within that."
Bigger concerns, Credit Suisse said, "would be demand recently, but stocks seem to be reflecting concerns, having lagged in recent months."
The National Retail Federation said Monday that "the coronavirus outbreak is expected to have a longer and larger impact on imports at major U.S. retail container ports than previously believed."
“As factories in China continue to come back online, products are now flowing again," Jonathan Gold, the federation's vice president for supply chain and customs policy, said.in a statement. "But there are still issues affecting cargo movement, including the availability of truck drivers to move cargo to Chinese ports."
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