Aussie auto stocks set to continue to outperform

Stocks in the automotive retailing and fleet management space have enjoyed a very strong re-rating this year, A.P. Eagers (ASX:APE) , SG Fleet (ASX:SGF) and Eclipx Group (ASX:ECX) are good examples. Money has rotated into these stocks as they have strong valuation support and are delivering sustainable earnings growth. Finding stocks that exhibit both these characteristics has been very difficult. These auto stocks can continue to outperform the market as Australian new cars sales continues to grow and with the industry primed for further consolidation which will see scale benefits accrue to shareholders.