Advance Auto Parts (AAP) Increases Despite Market Slip: Here's What You Need to Know
Advance Auto Parts (AAP) closed the latest trading day at $50.75, indicating a +1.56% change from the previous session's end. The stock's change was more than the S&P 500's daily loss of 0.5%. Elsewhere, the Dow saw an upswing of 0.12%, while the tech-heavy Nasdaq depreciated by 1.23%.
The auto parts retailer's stock has dropped by 16.19% in the past month, falling short of the Retail-Wholesale sector's loss of 5.07% and the S&P 500's loss of 2.4%.
The upcoming earnings release of Advance Auto Parts will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.43, reflecting a 49.65% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.68 billion, up 1.44% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.67 per share and a revenue of $11.27 billion, indicating changes of -64.19% and +1.03%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Advance Auto Parts. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.6% lower within the past month. At present, Advance Auto Parts boasts a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, Advance Auto Parts is currently exchanging hands at a Forward P/E ratio of 10.7. This signifies a discount in comparison to the average Forward P/E of 22.74 for its industry.
It's also important to note that AAP currently trades at a PEG ratio of 0.94. 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. As of the close of trade yesterday, the Automotive - Retail and Wholesale - Parts industry held an average PEG ratio of 1.42.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 221, placing it within the bottom 13% of over 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report
