Motorcar Parts of America, Inc. (MPAA - Snapshot Report) is seeing record sales as America's auto fleet ages and needs repair. This Zacks Rank #1 (Strong Buy) is expected to see double digit earnings growth in both Fiscal 2016 and Fiscal 2017.

Motorcar Parts of America makes and distributes automotive aftermarket parts including alternators, starters, wheel hub assembly products and brake master cylinders for both import and domestic cars, light trucks and heavy duty applications. It operates facilities in California, Mexico, Malaysia and China.

It sells to auto retail outlets and professional auto repair shops in the United States and Canada.

Strong Momentum Continued in the Fiscal Second Quarter

On Nov 9, Motorcar Parts reported its second quarter fiscal 2016 results and beat the Zacks Consensus for the second quarter in a row.

Earnings were 60 cents compared to the Zacks Consensus of 54 cents.

Net sales jumped 29.4% to $91.7 million from $70.8 million a year ago.

It saw strong growth in all product categories but particular strength in its rotating electrical and wheel hub business as well as the emerging master cylinder product line.

Motorcar Parts recently introduced full-line master cylinder coverage, including remanufactured units.

Full Year Estimates Rise

Motorcar Parts was optimistic about the second half of the fiscal year due to an aging vehicle population that will need more repairs, increased miles driven, and product line expansion opportunities.

The analysts are also optimistic as two raised their F2016 and F2017 estimates after the earnings report.

The Zacks Consensus Estimate for F2016 has risen to $2.14 from $2.08 in the last 30 days. That's earnings growth of 24% as the company made $1.72 in Fiscal 2015.

But the good times aren't expected to end any time soon. Earnings are expected to grow another 12% in fiscal 2017.

Shares Near 2-Year High

The auto sector has been on fire and Motorcar Parts of America's stock has joined in.

Shares are near 2-year highs.

But valuations haven't gotten overheated yet. Motorcar Parts trades with a forward P/E of 18.4 which isn't nosebleed levels by any means.

For investors looking for a way to play the auto sector without buying one of the auto makers, Motorcar Parts of America is a stock to keep on your short list.