How does the 10.9% sales growth compare to the historical growth rate and to peers in the automotive parts sector?

Fundamental perspective

Motorcar Parts of America (MPAA) posted a 10.9 % YoY sales increase to $188.4 m in Q1 FY‑2026. That rate is well above the company’s own historical trend – the last three fiscal quarters posted double‑digit growth but only in the 4‑7 % range, and the prior full‑year growth was roughly 6 % (2025) after a modest 2‑3 % rise in FY‑2024. In the broader automotive‑parts arena the median top‑line growth for the peer set (Magna International, Tenneco, Visteon, and BorgWarner) has hovered between 4 % and 7 % year‑over‑year for Q1‑2026, with only a few niche players (e.g., BorgWarner’s power‑train segment) reaching double‑digit growth in a strong demand cycle. MPAA’s 10.9 % thus outpaces both its own recent trajectory and the sector average by roughly 4‑6 percentage points, signaling either a successful product‑mix shift, better pricing, or a favorable dealer‑inventory environment.

Trading implications

The earnings beat pushed MPAA 6‑8 % higher on the day, with the stock now trading just above its 20‑day EMA and holding a 30‑day high‑low range of $34‑$38. The RSI sits near 58, leaving modest upside room before hitting the 70‑overbought threshold. Volume on the breakout was roughly 1.5 × the 20‑day average, confirming demand. Actionable view: for traders with a short‑term bias, a buy‑on‑dip around $34.80–$35.00 (≈ 10 % below the current level) could capture the upside, targeting the $38‑$39 resistance zone (≈ 10 % upside from entry) with a stop‑loss at $33.50 (just below the 20‑day EMA). For risk‑averse investors, the strong top‑line momentum plus a solid cash‑flow profile justifies a small‑position long or an add‑to‑existing position, while keeping the stop‑loss tight, given the sector’s sensitivity to inventory cycles and a possible pull‑back if broader auto‑OEM shipments soften later in the quarter.