$10,000 invested a year ago in these consumer discretionary shares is now worth…

These automotive companies have been racing higher this year.

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Key points

  • Despite the ASX 200 Consumer Discretionary Index's modest 4% increase, Eagers and Autosports Group have markedly outperformed. 
  • Known for its dominant presence in the Australian automotive market and association with the expanding Chinese electric vehicle brand BYD, Eagers Automotive shares climbed from $10.98 to $29.58. 
  • Autosports Group surged 142.36% over the past year.

The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is up a modest 4% in the last year. 

This sector is heavily influenced by factors like inflation, interest rates, and CPI. 

But while much of the sector has been relatively flat in the past year, there are two clear standouts that have brought impressive returns. 

Eagers Automotive Ltd (ASX: APE)

The company is the largest automotive retailing group in the Australian market.

The company's core business involves the ownership and operation of motor vehicle dealerships covering a diversified portfolio of automotive brands. Its range of products and services includes the sale of new and used vehicles, vehicle repair services, and parts, among others.

The Motley Fool's Kevin Gandiya covered last month that Eagers Automotive has benefited significantly from the rise of the fast-growing Chinese electric vehicle brand, BYD

Eagers operates roughly 80% of the Australian dealerships that sell BYD cars.

12 months ago, Eagers Automotive shares were trading at approximately $10.98 each. 

Yesterday, these consumer discretionary shares closed at $29.58. 

That represents a rise of almost 170%. 

A hypothetical investment of $10,000 this time last year would now be worth almost $27,000. 

Autosports Group Ltd (ASX: ASG

Another consumer discretionary stock that has raced ahead of the market in the last 12 months is Autosports Group. 

While Eagers deals with new and used cars, Autosports Group specialises in luxury and prestige car brands. 

The company's core business focuses on the sale of new and used motor vehicles. It also provides finance and insurance products on behalf of retail financiers and automotive insurers. 

The company has been expanding in the recent months, completing the acquisition of Mercedes-Benz Canberra and securing a prime Southport, Queensland site to develop a new flagship Mercedes-Benz facility.

12 months ago, Autosports shares were trading for $1.91 each. 

Yesterday, the share price closed at $4.52, which represents a rise of 142.36%. 

Based on these figures, a hypothetical investment of $10,000 a year ago would now be worth $23,665. 

Are either of these consumer discretionary stocks still a buy?

After rising significantly over the last year, many investors may feel they have missed the time to buy. 

Earlier this month, the team at Macquarie provided analysis on both stocks. 

The broker ultimately preferred Eagers Automotive shares due to the scale of its organic and inorganic growth opportunities. 

The broker had a price target of $29.98 on Eagers stock and $3.63 for Autosports Group.

This would indicate that Eagers is trading close to fair value, while Autosports Group is slightly overvalued at present. 

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended BYD Company. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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