Why Advance Auto Parts (AAP) Outpaced the Stock Market Today
The most recent trading session ended with Advance Auto Parts (AAP) standing at $52.03, reflecting a +1.36% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.65% gain on the day. On the other hand, the Dow registered a gain of 0.38%, and the technology-centric Nasdaq increased by 0.48%.
Coming into today, shares of the auto parts retailer had lost 4.84% in the past month. In that same time, the Retail-Wholesale sector lost 0.65%, while the S&P 500 lost 2.79%.
Market participants will be closely following the financial results of Advance Auto Parts in its upcoming release. The company plans to announce its earnings on November 15, 2023. The company is forecasted to report an EPS of $1.43, showcasing a 49.65% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $2.68 billion, up 1.44% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.66 per share and a revenue of $11.27 billion, signifying shifts of -64.26% and +1.03%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Advance Auto Parts. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.49% fall in the Zacks Consensus EPS estimate. As of now, Advance Auto Parts holds a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Advance Auto Parts is currently trading at a Forward P/E ratio of 11.02. This represents a discount compared to its industry's average Forward P/E of 20.18.
Investors should also note that AAP has a PEG ratio of 0.97 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. 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. Currently, this industry holds a Zacks Industry Rank of 182, positioning it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report
