Zacks Industry Outlook Spotlights LKQ, Dorman Products, and Standard Motor Products
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 20 2025
0mins
Source: NASDAQ.COM
Industry Challenges: The automotive replacement parts industry faces rising complexities due to modern vehicle technology, which increases service costs and requires specialized skills, while also being pressured by U.S. import tariffs on parts from abroad.
Aging Vehicle Fleet: The average age of vehicles in the U.S. has risen to 12.8 years, leading to increased demand for maintenance and replacement parts as owners opt to keep their existing cars rather than purchase new ones.
Market Performance: The Zacks Automotive - Replacement Parts industry has underperformed compared to the broader Auto, Tires, and Truck sector and the S&P 500, with a Zacks Industry Rank indicating weak near-term prospects and declining earnings estimates.
Stock Recommendations: Companies like Standard Motor Products, LKQ Corp., and Dorman Products are highlighted as potential investment opportunities, each showing growth potential through strategic acquisitions and operational improvements.
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Analyst Views on SMP
Wall Street analysts forecast SMP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SMP is 49.00 USD with a low forecast of 49.00 USD and a high forecast of 49.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 39.520
Low
49.00
Averages
49.00
High
49.00
Current: 39.520
Low
49.00
Averages
49.00
High
49.00
No data
About SMP
Standard Motor Products, Inc. is a manufacturer and distributor of replacement parts in the automotive aftermarket and a custom-engineered solutions provider to vehicle and equipment manufacturers in diverse non-aftermarket end markets. The Company’s Vehicle Control Segment services its core automotive aftermarket customers through its offering of replacement parts within the product groups: Engine Management, Electrical and Safety and Wire Sets and Other. Its Temperature Control Segment also services its core automotive aftermarket customers through its offering of replacement parts within the various product groups: AC System Components and Other Thermal Components. The Company’s Engineered Solutions Segment services its vehicle and equipment manufacturing customers across diverse global end markets, including on-highway and off-highway applications such as commercial and light vehicles, construction, agriculture, power sports, marine, hydraulics and lawn and garden.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Standard Motor Products Named One of America's Most Responsible Companies for Third Year
- Sustainability Recognition: Standard Motor Products has been named one of America's Most Responsible Companies for 2026 by Newsweek and Statista for the third consecutive year, highlighting its ongoing commitment to sustainability and enhancing its reputation in the automotive components sector.
- Selection Criteria Explained: The ranking is based on research of over 30 key performance indicators across 2,000 U.S. public companies and a public survey of 26,000 residents, ensuring the evaluation's fairness and authority in assessing environmental, social, and corporate governance performance.
- Corporate Responsibility Commitment: CEO Eric Sills emphasized the company's dedication to being a responsible corporate citizen, integrating sustainable practices to create long-term value for stakeholders, thereby reinforcing the foundation of its success.
- Industry Leadership: As a leading independent manufacturer and distributor in the automotive aftermarket, SMP showcases its strong competitiveness and influence in diverse global markets, selling products across the U.S., Canada, Europe, Asia, and Latin America.
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Standard Motor Products Named One of America's Most Responsible Companies for Third Year
- Sustainability Recognition: Standard Motor Products has been named one of America's Most Responsible Companies for the third consecutive year by Newsweek and Statista, highlighting its ongoing commitment to sustainability and enhancing its reputation in the automotive components sector.
- Rigorous Selection Criteria: The ranking is based on research of over 30 key performance indicators for 2,000 U.S. public companies and a public survey of 26,000 residents, ensuring the evaluation's fairness and authority, which boosts the company's recognition in corporate social responsibility.
- Commitment to Corporate Responsibility: CEO Eric Sills emphasized the company's dedication to being a responsible corporate citizen, integrating sustainable practices to create long-term value for stakeholders, thereby strengthening its competitive position in the industry.
- Century-Long Legacy: With over 100 years in business, SMP is a leading independent manufacturer and distributor of premium replacement parts and custom-engineered solutions, solidifying its leadership in the global market.
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