Advance Auto Parts (AAP) Stock Declines While Market Improves: Some Information for Investors
Advance Auto Parts (AAP) ended the recent trading session at $56.66, demonstrating a -0.84% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.18%. Meanwhile, the Dow experienced a rise of 0.1%, and the technology-dominated Nasdaq saw an increase of 0.3%.
Shares of the auto parts retailer witnessed a gain of 9.91% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 5.64% and the S&P 500's gain of 3.08%.
Investors will be eagerly watching for the performance of Advance Auto Parts in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 15, 2023. The company's upcoming EPS is projected at $1.43, signifying a 49.65% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.68 billion, indicating a 1.44% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.66 per share and a revenue of $11.27 billion, indicating changes of -64.26% and +1.03%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Advance Auto Parts. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.46% downward. Right now, Advance Auto Parts possesses a Zacks Rank of #4 (Sell).
Digging into valuation, Advance Auto Parts currently has a Forward P/E ratio of 12.26. Its industry sports an average Forward P/E of 22.28, so one might conclude that Advance Auto Parts is trading at a discount comparatively.
Investors should also note that AAP has a PEG ratio of 1.08 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Automotive - Retail and Wholesale - Parts was holding an average PEG ratio of 1.4 at yesterday's closing price.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report
