Advance Auto Parts (AAP) Surpasses Market Returns: Some Facts Worth Knowing
Advance Auto Parts (AAP) closed the latest trading day at $66.37, indicating a +1.9% change from the previous session's end. This change outpaced the S&P 500's 0.23% gain on the day. On the other hand, the Dow registered a gain of 0.37%, and the technology-centric Nasdaq increased by 0.07%.
Coming into today, shares of the auto parts retailer had gained 5.2% in the past month. In that same time, the Retail-Wholesale sector gained 6.9%, while the S&P 500 gained 5.3%.
The upcoming earnings release of Advance Auto Parts will be of great interest to investors. On that day, Advance Auto Parts is projected to report earnings of $0.24 per share, which would represent a year-over-year decline of 91.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.47 billion, down 0.2% from the year-ago period.
It's also important for investors to be aware of any recent modifications to analyst estimates for Advance Auto Parts. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
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, 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 witnessed a 3.1% decrease. As of now, Advance Auto Parts holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Advance Auto Parts is holding a Forward P/E ratio of 17.34. This denotes a discount relative to the industry's average Forward P/E of 24.67.
Investors should also note that AAP has a PEG ratio of 1.24 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Retail and Wholesale - Parts was holding an average PEG ratio of 1.52 at yesterday's closing price.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 108, putting it in the top 43% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report
