Advance Auto Parts (AAP) Stock Sinks As Market Gains: What You Should Know
Advance Auto Parts (AAP) ended the recent trading session at $65.44, demonstrating a -0.97% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.08%. Elsewhere, the Dow saw a downswing of 0.26%, while the tech-heavy Nasdaq appreciated by 0.36%.
The the stock of auto parts retailer has risen by 8.47% in the past month, leading the Retail-Wholesale sector's gain of 0.71% and the S&P 500's gain of 2.4%.
The investment community will be paying close attention to the earnings performance of Advance Auto Parts in its upcoming release. The company is forecasted to report an EPS of $0.24, showcasing a 91.67% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $2.47 billion, down 0.2% from the year-ago period.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Advance Auto Parts. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.08% decrease. Currently, Advance Auto Parts is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Advance Auto Parts currently has a Forward P/E ratio of 17.07. This expresses a discount compared to the average Forward P/E of 24.06 of its industry.
One should further note that AAP currently holds a PEG ratio of 1.22. 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 the market closed yesterday, the Automotive - Retail and Wholesale - Parts industry was having an average PEG ratio of 1.49.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 65, positioning it in the top 26% 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
