Advance Auto Parts (AAP) Stock Dips While Market Gains: Key Facts
Advance Auto Parts (AAP) closed the most recent trading day at $48.25, moving -0.41% from the previous trading session. This move lagged the S&P 500's daily gain of 0.73%. At the same time, the Dow added 0.62%, and the tech-heavy Nasdaq gained 0.93%.
The auto parts retailer's shares have seen a decrease of 14.88% over the last month, not keeping up with the Retail-Wholesale sector's loss of 3.41% and the S&P 500's loss of 2.29%.
Analysts and investors alike will be keeping a close eye on the performance of Advance Auto Parts in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.43, indicating a 49.65% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.68 billion, up 1.44% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.67 per share and a revenue of $11.27 billion, signifying shifts of -64.19% and +1.03%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Advance Auto Parts. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.6% fall in the Zacks Consensus EPS estimate. As of now, Advance Auto Parts holds a Zacks Rank of #5 (Strong Sell).
Digging into valuation, Advance Auto Parts currently has a Forward P/E ratio of 10.37. This signifies a discount in comparison to the average Forward P/E of 20.59 for its industry.
We can also see that AAP currently has a PEG ratio of 0.91. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Automotive - Retail and Wholesale - Parts industry had an average PEG ratio of 1.31.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 179, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report
