Zacks Industry Outlook Highlights Dorman Products, Standard Motor Products and Douglas Dynamics

For Immediate ReleaseChicago, IL – September 3, 2025 – Today, Zacks Equity Research discusses Dorman Products, Inc. DORM, Standard Motor Products, Inc. SMP and Douglas Dynamics, Inc. PLOW.Industry: Auto PartsLink: https://www.zacks.com/commentary/2745302/3-auto-replacement-parts-stocks-to-gain-from-surging-demandThe Zacks Automotive Replacement Parts industry faces challenges as evolving vehicle technology increases complexity, raises repair costs and pressures supply chains to adapt quickly. Traditional retailers are also under strain as consumers shift to online platforms that offer greater convenience and competitive pricing, forcing industry participants to invest heavily in digital capabilities.However, the aging U.S. vehicle fleet supports strong demand for replacement parts, as owners delay new purchases due to high vehicle prices and focus on maintaining older cars, boosting the industry’s prospects. Players like Dorman Products, Inc., Standard Motor Products, Inc. and Douglas Dynamics, Inc. are set to benefit from growing demand.Industry OverviewThe Zacks Automotive - Replacement Parts industry comprises companies that engage in the production, marketing and distribution of replacement components for the automotive aftermarket. The industry players offer replacement systems, components, equipment and parts to repair as well as accessorize vehicles. Some important auto replacement components are engine, steering, drive axle, suspension, brakes and gearbox parts.The auto replacement market is somewhat less exposed to business downturns, as consumers are more inclined to spend on replacement parts to maintain their vehicles rather than splurge on new ones. Consumers can either opt for repairing vehicles on their own or avail professional services for the same. The industry is undergoing a radical change, with evolving customer expectations and technological innovation acting as game changers.Factors Influencing the Industry DynamicsEvolving Technology Challenges Supply Chains: The increasing complexity of modern vehicles presents significant challenges for the automotive supply chain. As cars become more technologically advanced and reliant on integrated systems, their maintenance and repair demand specialized knowledge and equipment that differ from those used for conventional vehicles. This shift can result in longer repair times, higher costs and rising pressure on aftermarket supply chains to adapt quickly.The challenge is particularly acute with the rise of electric, connected and autonomous vehicles, which require entirely new components and service capabilities. These factors are likely to weigh on the margins of players operating in the replacement parts industry.Rising Expenses on Digital Transformation: As e-commerce adoption accelerates, an increasing share of consumers are purchasing automotive parts through digital platforms rather than traditional outlets. To remain competitive, companies are required to undertake significant investments to establish and scale their digital presence. While these investments enhance long-term growth prospects and market relevance, they can exert considerable pressure on near-term cash flows.Aging Fleet to Boost Demand: As vehicles get older, they require more frequent part replacements to stay operational. With both new and used car prices remaining high, many owners are postponing purchases and instead investing in maintenance and repairs to extend the lifespan of their current vehicles. The average age of vehicles in the United States has risen to 12.8 years in 2025, up from 12.6 years in 2024. This rising fleet of aging vehicles will continue to boost demand for replacement parts, driving the industry’s prospects.Zacks Industry Rank Indicates Dim ProspectsThe Zacks Automotive – Replacements Parts industry is part of the broader Zacks Auto-Tires-Trucks sector. The industry currently carries a Zacks Industry Rank #197, which places it in the bottom 20% of around 250 Zacks industries.The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates dim near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of a weak earnings outlook for the constituent companies in aggregate. Over the past year, the industry’s earnings estimates for 2025 and 2026 have moved down 11.30% and 8.4%, respectively.Before we present a few stocks from the industry worth considering for your portfolio, let's take a look at the industry’s stock market performance and current valuation.Industry Lags Sector and S&P 500The Zacks Automotive – Replacement Parts industry has underperformed the Auto, Tires and Truck sector and the S&P 500 composite over the past year. The industry has lost 19.5% against the sector’s growth of 12.2%. Meanwhile, the S&P 500 has returned 15.7% in the same timeframe.Industry's Current ValuationSince automotive companies are debt-laden, it makes sense to value them based on the Enterprise Value/ Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA) ratio. On the basis of trailing 12-month enterprise value to EBITDA (EV/EBITDA), the industry is currently trading at 6.89X compared with the S&P 500’s 17.81X and the sector’s trailing 12-month EV/EBITDA of 22.03X. Over the past five years, the industry has traded as high as 12.15X, as low as 6.04X and at a median of 10.36X.3 Stocks to ConsiderDorman: It is a leading supplier of Dealer Exclusive replacement parts to the Automotive, Medium and Heavy Duty Aftermarkets. In May 2025, the company’s Light Duty segment introduced hundreds of new automotive repair solutions. These launches create an estimated 12 million-plus new sales opportunities for aftermarket distributors. The company has made an upward revision in its sales forecast due to strong demand in its Light Duty business. It now estimates 2025 net sales to rise 7-9% year over year compared to the previous estimate of 3-5%.DORM surpassed earnings estimates in each of the trailing four quarters, the average surprise being 23.12%. The Zacks Consensus Estimate for Dorman’s 2025 earnings implies year-over-year growth of 18.1%. The stock currently carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Standard Motor: It is one of the leading manufacturers, distributors and marketers of premium automotive replacement parts for engine management and temperature control systems. The acquisition of Nissens, completed in November 2024, has helped SMP expand its geographic presence and establish a significant global growth platform. With the integration of Nissens, SMP anticipates achieving $8-$12 million in annualized cost savings within 24 months of the acquisition.The Zacks Consensus Estimate for Standard Motors’ 2025 sales and earnings implies year-over-year growth of 19.8% and 16.7%, respectively. The stock currently carries a Zacks Rank #2.Douglas: It designs, manufactures and sells snow and ice control equipment for light trucks, which is comprised of snowplows and sand and salt spreaders, and related parts and accessories. In the second quarter of 2025, Douglas’s Solutions segment achieved its best-ever second-quarter performance with net sales increasing 5.4% and adjusted EBITDA growing 39.8%.The segment continues to have a solid backlog of orders and is on track for another year of margin improvement. Due to the strong expected performance of this segment, the company has raised its 2025 net sales forecast. It now expects net sales in the range of $630-$660 million compared to the previous range of $610-$650 million.PLOW surpassed earnings estimates in each of the trailing four quarters, the average surprise being 50.43%. The Zacks Consensus Estimate for Douglas’ 2025 sales and earnings implies year-over-year growth of 13.3% and 46.9% respectively. The stock currently carries a Zacks Rank #2.Free: Instant Access to Zacks' Market-Crushing StrategiesSince 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.Get all the details here >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Higher. Faster. Sooner. Buy These Stocks NowA small number of stocks are primed for a breakout, and you have a chance to get in before they take off.At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We’ve combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month.You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days.Download the report free now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Standard Motor Products, Inc. (SMP): Free Stock Analysis Report Douglas Dynamics, Inc. (PLOW): Free Stock Analysis Report Dorman Products, Inc. (DORM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks