Advance Auto Parts (AAP) Ascends While Market Falls: Some Facts to Note
The most recent trading session ended with Advance Auto Parts (AAP) standing at $67.25, reflecting a +0.43% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily loss of 0.06%. On the other hand, the Dow registered a gain of 0.35%, and the technology-centric Nasdaq decreased by 0.76%.
The auto parts retailer's shares have seen an increase of 9.72% over the last month, surpassing the Retail-Wholesale sector's gain of 1.86% and the S&P 500's gain of 3.36%.
The investment community will be closely monitoring the performance of Advance Auto Parts in its forthcoming earnings report. The company is expected to report EPS of $0.24, down 91.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.47 billion, down 0.2% from the prior-year quarter.
It's also important for investors to be aware of any recent modifications to analyst estimates for Advance Auto Parts. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% lower. At present, Advance Auto Parts boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Advance Auto Parts is currently exchanging hands at a Forward P/E ratio of 17.3. This denotes a discount relative to the industry's average Forward P/E of 24.32.
It's also important to note that AAP currently trades at a PEG ratio of 1.24. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Automotive - Retail and Wholesale - Parts industry had an average PEG ratio of 1.54 as trading concluded yesterday.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report
