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Advance Auto Parts (AAP) Stock Sinks As Market Gains: What You Should Know
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Advance Auto Parts (AAP - Free Report) closed the most recent trading day at $139.38, moving -1.08% from the previous trading session. This move lagged the S&P 500's daily gain of 0.1%. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, lost 0.09%.
Prior to today's trading, shares of the auto parts retailer had lost 4.95% over the past month. This has lagged the Retail-Wholesale sector's loss of 3.96% and the S&P 500's loss of 3.6% in that time.
Advance Auto Parts will be looking to display strength as it nears its next earnings release. On that day, Advance Auto Parts is projected to report earnings of $2.44 per share, which would represent year-over-year growth of 17.87%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.42 billion, up 1.15% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.60 per share and revenue of $11.11 billion, which would represent changes of +4.83% and +0.98%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Advance Auto Parts. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.16% lower within the past month. Advance Auto Parts is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Advance Auto Parts has a Forward P/E ratio of 11.18 right now. This valuation marks a discount compared to its industry's average Forward P/E of 16.94.
Also, we should mention that AAP has a PEG ratio of 0.89. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Retail and Wholesale - Parts was holding an average PEG ratio of 1.81 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 90, putting it in the top 36% 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.
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 (AAP) Stock Sinks As Market Gains: What You Should Know
Advance Auto Parts (AAP - Free Report) closed the most recent trading day at $139.38, moving -1.08% from the previous trading session. This move lagged the S&P 500's daily gain of 0.1%. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, lost 0.09%.
Prior to today's trading, shares of the auto parts retailer had lost 4.95% over the past month. This has lagged the Retail-Wholesale sector's loss of 3.96% and the S&P 500's loss of 3.6% in that time.
Advance Auto Parts will be looking to display strength as it nears its next earnings release. On that day, Advance Auto Parts is projected to report earnings of $2.44 per share, which would represent year-over-year growth of 17.87%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.42 billion, up 1.15% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.60 per share and revenue of $11.11 billion, which would represent changes of +4.83% and +0.98%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Advance Auto Parts. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.16% lower within the past month. Advance Auto Parts is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Advance Auto Parts has a Forward P/E ratio of 11.18 right now. This valuation marks a discount compared to its industry's average Forward P/E of 16.94.
Also, we should mention that AAP has a PEG ratio of 0.89. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Retail and Wholesale - Parts was holding an average PEG ratio of 1.81 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 90, putting it in the top 36% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.