Advance Auto Parts (AAP) closed at $159.31 in the latest trading session, marking a +1.03% move from the prior day. This move outpaced the S&P 500's daily loss of 0.21%. Elsewhere, the Dow lost 0.43%, while the tech-heavy Nasdaq added 0.03%.
Prior to today's trading, shares of the auto parts retailer had lost 7.54% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 9.13% and the S&P 500's loss of 9.7% in that time.
Investors will be hoping for strength from Advance Auto Parts as it approaches its next earnings release. On that day, Advance Auto Parts is projected to report earnings of $3.31 per share, which would represent year-over-year growth of 3.12%. Meanwhile, our latest consensus estimate is calling for revenue of $2.65 billion, up 1.19% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.01 per share and revenue of $11.12 billion, which would represent changes of +8.24% and +1.09%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Advance Auto Parts. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.16% higher. Advance Auto Parts is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Advance Auto Parts is currently trading at a Forward P/E ratio of 12.12. Its industry sports an average Forward P/E of 15.5, so we one might conclude that Advance Auto Parts is trading at a discount comparatively.
Investors should also note that AAP has a PEG ratio of 0.97 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Retail and Wholesale - Parts industry currently had an average PEG ratio of 1.55 as of yesterday's close.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 219, which puts it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report
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