Advance Auto Parts (AAP) Stock Slides as Market Rises: Facts to Know Before You Trade
In the latest market close, Advance Auto Parts (AAP) reached $61.30, with a -1.81% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 0.08%. Meanwhile, the Dow experienced a drop of 0.31%, and the technology-dominated Nasdaq saw an increase of 0.02%.
Coming into today, shares of the auto parts retailer had lost 2.41% in the past month. In that same time, the Retail-Wholesale sector gained 4.89%, while the S&P 500 gained 3.52%.
Investors will be eagerly watching for the performance of Advance Auto Parts in its upcoming earnings disclosure. The company is expected to report EPS of $0.23, down 92.01% 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.
Any recent changes to analyst estimates for Advance Auto Parts should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.04% higher. At present, Advance Auto Parts boasts a Zacks Rank of #4 (Sell).
With respect to valuation, Advance Auto Parts is currently being traded at a Forward P/E ratio of 16.11. This indicates a discount in contrast to its industry's Forward P/E of 22.31.
Also, we should mention that AAP has a PEG ratio of 1.15. 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 1.46.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 99, finds itself in the top 40% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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
