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Advance Auto Parts (AAP) Gains But Lags Market: What You Should Know
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Advance Auto Parts (AAP - Free Report) closed at $151.89 in the latest trading session, marking a +0.23% move from the prior day. This move lagged the S&P 500's daily gain of 0.75%. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, added 10.36%.
Prior to today's trading, shares of the auto parts retailer had gained 4.13% over the past month. This has outpaced the Retail-Wholesale sector's loss of 6.09% and the S&P 500's loss of 5.98% in that time.
Wall Street will be looking for positivity from Advance Auto Parts as it approaches its next earnings report date. 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%. Our most recent consensus estimate is calling for quarterly revenue of $2.42 billion, up 1.15% from the year-ago period.
Any recent changes to analyst estimates for Advance Auto Parts should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.21% lower. Advance Auto Parts is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Advance Auto Parts is currently trading at a Forward P/E ratio of 11.19. This valuation marks a discount compared to its industry's average Forward P/E of 19.75.
It is also worth noting that AAP currently 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. AAP's industry had an average PEG ratio of 1.75 as of yesterday's close.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 218, putting it in the bottom 14% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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Advance Auto Parts (AAP) Gains But Lags Market: What You Should Know
Advance Auto Parts (AAP - Free Report) closed at $151.89 in the latest trading session, marking a +0.23% move from the prior day. This move lagged the S&P 500's daily gain of 0.75%. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, added 10.36%.
Prior to today's trading, shares of the auto parts retailer had gained 4.13% over the past month. This has outpaced the Retail-Wholesale sector's loss of 6.09% and the S&P 500's loss of 5.98% in that time.
Wall Street will be looking for positivity from Advance Auto Parts as it approaches its next earnings report date. 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%. Our most recent consensus estimate is calling for quarterly revenue of $2.42 billion, up 1.15% from the year-ago period.
Any recent changes to analyst estimates for Advance Auto Parts should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.21% lower. Advance Auto Parts is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Advance Auto Parts is currently trading at a Forward P/E ratio of 11.19. This valuation marks a discount compared to its industry's average Forward P/E of 19.75.
It is also worth noting that AAP currently 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. AAP's industry had an average PEG ratio of 1.75 as of yesterday's close.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 218, putting it in the bottom 14% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.